Germany's economic outlook brightened again, the Bundesbank said in its monthly report on Monday. But risks relating to sovereign debt crisis remain in the region.
In the first quarter, external forces would possibly weigh on production. Nonetheless, the cyclical forces will boost activity in the spring, the bank said.
A rapid resumption of growth as estimated in December is more likely to materialize. Demand in construction is expected to provide a strong impetus in the foreseeable future.
In the fourth quarter of 2011, the economy suffered a 0.2 percent quarter-on-quarter GDP decline, following an upwardly revised 0.6 percent expansion in the third quarter.