The German government slightly raised its growth forecast for this year, pointing to indications that the country's sputtering economy will reach a turning point this spring.
Growth of 0.3% is now expected for Germany, the largest economy in the European Union, according to the Economy Ministry on Wednesday.
In February, the government had drastically downgraded its forecast for 2024 to just 0.2%, compared with 1.3% still expected in the autumn.
Economy Minister Robert Habeck said at the time that the economy was in "rough waters" and that the country was "emerging from the crisis more slowly than we had hoped."
On Wednesday, Habeck said the ministry sees signs of a slight economic upturn in the course of the year, while inflation would continue to decline.
According to the forecast, the increase in consumer prices should fall from 5.9% last year to 2.4% in the current year, bolstering household purchasing power and helping private consumption recover.
The German government is forecasting GDP growth of 1% in 2025.
Business associations have long been calling for significant relief for companies. Habeck has also spoken out in favour of a growth package.
Innovation must be strengthened, unnecessary bureaucracy reduced and the labour shortage tackled with determination, Habeck said on Wednesday.
A 12-point paper from the pro-business Free Democrat Party (FDP) - one of the three parties in the governing coalition - recently caused a stir with demands for relief for the economy and restrictions on the welfare state.
This was met with strong criticism, particularly from Chancellor Olaf Scholz's centre-left Social Democrats (SPD).
