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IMF raises growth forecast for Germany, calls for more investment

BERLIN, July 7 (Reuters) - The International Monetary Fund on Friday raised its growth forecast for Germany, citing soaring domestic demand and rebounding exports, and it repeated its call for Berlin to increase investment and reduce its current account surplus.

The IMF now expects Europe's largest economy to grow by 1.8 percent in 2017 and by 1.6 percent in 2018 in real terms. That marks an upward revision from its April forecasts of 1.6 percent this year and 1.5 percent for next year.

"Germany's growth momentum has remained solid, underpinned by robust domestic demand," the IMF said, pointing to rising employment, increased state spending and the European Central Bank's continued monetary stimulus. (Reporting by Michael Nienaber; Editing by Michelle Martin)