The Bundesbank upgraded its forecast for growth of the German economy this year, saying that while the eurozone debt crisis had left its mark, Europe’s top economy remained in good shape.

In its latest monthly report, the German central bank raised its forecast for gross domestic product (GDP) growth this year to one per cent from 0.6 per cent previously.

But it trimmed its 2013 forecast to 1.6 per cent from 1.8 per cent.

“Following a temporary phase of weakness, the German economy has regained momentum,” the German central bank wrote in its latest monthly report.

“The adjustment recession in some eurozone countries and the loss in confidence resulting from the sovereign debt crisis have left their mark. But the German economy’s structural soundness and the robustness of the global economy have retained the upper hand,” it said.