BERLIN (Dow Jones)—Germany’s economy will pick up speed in the course of the year and the recovery in exports will continue, the economics ministry said Tuesday.

“The production loss caused by weather conditions is likely to be made good in spring and the German economy will pick up speed in the further course of 2010,” the ministry said in its February monthly report.
“Foreign trade is currently providing economic incentives... World economic conditions as well as the corresponding indicators hint that a recovery in exports will continue, although this will be at a somewhat slower pace.”
Last week, the government said that Germany’s real gross domestic product unexpectedly stagnated in the final quarter of 2009 compared with the previous three months, with exports boosting the economy while private consumption and investment dragged it down.
The ministry said the outlook for private consumption remains depressed due to “risks in the labor markets” but this will be accompanied by lower tax burdens and tax breaks for families.