The German economy expanded 0.6% in 2019, the weakest expansion rate since 2013 and a marked cooling from the previous year, as export-dependent manufacturers in Europe’s largest economy faced increased headwinds from trade disputes and less foreign demand.

German business confidence unexpectedly rose in June to a record high, as strong domestic consumption and robust exports combined to make company executives increasingly upbeat about the growth outlook for Europe’s largest economy.

The European Central Bank may raise rates if inflation pressure increases, even after it pledged to keep borrowing costs low, according to Germany’s Bundesbank.

GERMAN corporate morale surged to its strongest level since reunification this month, showing firms expect the economy to weather a tax hike in 2007 and raising expectations interest rates could rise further.