The German economy is set to grow around 2.25 percent this year but the consumption-driven growth is likely to be short-lived, the IW Cologne economic institute said in a report on Monday.
The growth rate projected by the institute is bigger than the 1.8 percent estimated by the government. The institute expects growth to ease to around 1.5 percent next year.
The decline in oil prices and record low interest rates boosted economic growth this year. Nonetheless, the think tank warned that the economy will lose much of the momentum as early as next year.
The high consumption-driven growth is probably just a flash in the pan, it said.
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