Michael Rogowski, president of the BDI, wrote in a contribution for Bild am Sonntag newspaper that the improving outlook is due to the government's economic reform policies, booming exports and a brighter business climate.
"More and more economic forecasts are being correcting upwards towards the two percent level for this year," Rogowski said. "That's a good step towards three percent that we can certainly reach in the medium-term."
The BDI said recently it expected gross domestic product in 2004 to expand by up to 1.7 percent this year, the strongest since 2000, and even more in 2005 - thanks largely to strong export growth.
"The export engine is now running at full speed, the business climate has showed an appreciable improvement, and the Bundesbank has spoken of a clear increase in the economy's dynamism."
Rogowski said the prospects of a sustained upturn have considerably improved.
Rogowski said Germany could be proud that it is putting a long phase of standstill behind it.