The Bundesbank raised its growth forecasts for the German economy to 3.1% in 2011 and 1.8% in 2012 compared with 2.5% and 1.5% estimated in February, commenting that the prospects of the German economy experiencing a lengthy period of expansion are rising as the recovery has evolved into a broad-based upturn.

In addition, the central bank expects unemployment to retreat to 7.0% this year and 6.5% next year, while inflation is expected to reach 2.5% in the current year before sliding to 1.8% the year after.