The German government is raising its growth forecast for 2014 slightly to 1.8 percent, saying that low unemployment and rising wages should spur domestic demand.

The Economy Ministry had previously predicted 1.7 percent growth.

The growth forecast Wednesday marks a big rebound from 2013 when Germany managed to eke out only modest 0.4 percent growth.

Germany has managed to keep growing while other countries using the euro currency have stagnated or slumped. It currently has an unemployment rate of 7.3 percent while others such as Spain and Greece have rates above 25 percent.