Berlin: The German economy would grow strongly in the third quarter this year despite risks resulting from Britain's decision to leave the European Union, said German central bank on Monday. "It is currently difficult to estimate effects of Brexit on the German economy, but it could remain limited, at least in the short term," said the Bundesbank in its monthly report, forecasting that the German economy would grow strongly in coming months following a slowdown in the second quarter. "The underlying trend is still quite strong, and a significant increase in economic output can be expected for the summer quarter," Xinhua news agency quoted it as saying. According to the central bank, the driving factors of domestically supported upswing, including the excellent labour market, rising real wages and an expansionary fiscal policy, remain intact. "The continued favourable business and household sentiment suggests a purely temporary breather in the second quarter," it said. Europe's biggest economy grew by 0.7 per cent in the first quarter of 2016. Economists expected the growth to have slowed in the second quarter.