Germany's central bank on Friday raised its growth forecast for Germany next year to 1.7 percent, citing expanding domestic demand in its upbeat assessment.
The forecast was up from the central Bundesbank's prediction made in June of 1.5 percent gross domestic product growth for 2014, citing an easing of the wider eurozone crisis.
In 2015, it said, the growth rate would accelerate to 2.0 percent.
"The German economy is in good shape," said the bank's president Jens Weidmann. "The unemployment rate is low, employment is rising, and wage growth is returning to normal."
The bank also raised its GDP growth projection for Germany for this year to "no more than 0.5 percent", from 0.3 percent six months ago.
In its report, the bank said the German economy, the biggest in Europe and the eurozone, had picked up momentum after being battered in recent years by the turmoil of the global and European financial and economic crises.
"Aggregate output is expanding at a faster pace again after an interruption due to the escalation of the sovereign debt crisis in the euro area," it said.
"The driving forces are changing, however. While external impulses had the upper hand following the economic and financial crisis, domestic economic activity has come to fore recently."