Germany's economy has more room for growth and the domestic upswing is expected to continue for sometime yet, International Monetary Fund First Deputy Managing Director John Lipsky said in an interview with Handelsblatt. "Germany has posted 2.7 pct economic growth, and there is still room for improvements... room for more growth," he said. German GDP year-on-year growth last year was at 2.7 pct. Lipsky said companies are investing again in Germany while there have been improvements in domestic-based firms and those oriented to the services sector. "Therefore, I am optimistic that the recovery in Germany will continue for sometime yet," he said. He said the economic reforms implemented in the past few years are now bearing fruit and companies have become more competitive. He said the government and private households could, however, to improve productivity.