Germany's economic activity is likely to improve markedly in the second quarter, the Bundesbank said in its monthly report on Tuesday.
Bundesbank sees "catch-up effects" in the construction sector. In addition, the central bank expects noticeable increase in industrial new orders to underpin exports and investment.
Nonetheless, the bank said there remains significant macroeconomic risks from euro area crisis.
According to official data, the largest Eurozone economy narrowly escaped recession in the first quarter of 2013. Due to weak investment and exports, gross domestic product grew only 0.1 percent sequentially.
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