For this year, the economy ministry expects growth of 0.8 percent, up from 0.7 percent in April.
The nation has been feeling the burden of the European debt crisis and an economic weakening in emerging nations in Asia and Latin America.
The country is, however, doing better than the rest of the Euro area. The weaker Euro has helped Germany’s exports more attractive to the customers outside the Eurozone.
Economy Minister Philipp Roesler said private consumption, long subdued, would remain to be a main pillar of growth for Germany.
Real wages should rise by 2.8 percent this year and 2.6 percent next year, outpacing inflation forecast at 2.0 and 1.9 percent respectively.