The economy of Germany is expected to grow by around 3% in this fiscal year. It has grown up at its fastest pace of last 20 years in the second quarter of this year during April to June. This growth in the economy has forced the central bank Bundesbank to revise up its growth forecast from the original of 1.9%.

According to the bank, the biggest economy of Europe is still remained favorable and expected to continue the growth in the second half of the year. But the bank has also mentioned about the risks from the international financial markets and developments.

The main reasons behind the quarter to quarter growth of 2.2% of Germany are the strong rise in exports and the weaker value of euro. As per the experts the strong contribution from government spending, household and exports had boosted the economic growth of the country in the second quarter.

But the central bank said the growth would be normalized after the saturation of the economy. The financial minister of Germany, Rainer Bruederle has made a forecast of more than 2% economic growth for the next year.