By Nina Adam

FRANKFURT--Germany's leading think tanks ​on Thursday raised ​their growth projections for Europe's largest economy for this year​​​ but ​trimmed their expectations for 2017​​.

​They expect growth of 1.​9​% in 2016, ​compared with April's prediction of 1.​6​%. ​Germany's economic growth rate is expected to ease to 1.4% in 2017, compared with an earlier estimate of 1.5%, but recover slightly to 1.6% in 2018. ​

Germany's "moderate" upswing is ​underpinned by a solid labor market and buoyant consumption​, the Munich-based Ifo institute, the Essen-based RWI, the DIW in Berlin, the IWH in Halle and the IfW in Kiel said in a joint research document.

The national budget surplus​ ​is forecast​ to ease to ​20​.1 billion euros ($​22.5​ billion) this year from EUR2​2.6​ billion in 2015​. For 2017 and 2018, the think tanks forecast surpluses of EUR13.7 billion and EUR16 billion, respectively​.

They forecast that Germany's current-account surplus will ​hit​ 8.​8​% of ​gross domestic product this year​​ but ease to 8.4% in 2018.

Write to Nina Adam at nina.adam@wsj.com ​

(END) Dow Jones Newswires

September 29, 2016 05:45 ET (09:45 GMT)

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