BERLIN, Oct 7 (Reuters) - The German economy will grow more than expected this year due to increased state spending on migrants, lower oil prices and the weak euro exchange rate, the Economy Ministry said on Friday.
"The upswing of the German economy is solid," Economy Minister Sigmar Gabriel said in a statement. "The German economy is holding its ground especially against the backdrop of a difficult trade environment."
"The world economy is not running smoothly," Gabriel said, adding that the impact of Britain's decision to leave the European Union on the German economy so far had a limited impact but it would be felt harder in the medium term.
The government lifted its 2016 growth forecast for Europe's biggest economy to 1.8 percent from 1.7 percent previously, which would be the strongest rate in half a decade.
It revised down its prediction for next year, predicting an expansion of 1.4 percent instead of 1.5 percent. For 2018, the government expects growth to pick up again to 1.6 percent. (Reporting by Michael Nienaber; Editing by Joseph Nasr)