Germany’s central bank has slashed its 2013 growth forecast to 0.4 per cent, from a previous prediction of 1.6 per cent, amid continuing concerns about the health of Europe’s largest economy.
The Bundesbank also lowered its forecast for growth this year to 0.7 per cent from the 1 per cent it predicted in June, but said it expects a rebound to 1.9 per cent growth in 2014.
Today’s gloomy assessment comes a day after the European Central Bank said it expects an economic contraction of 0.3 per cent for the 17-nation eurozone next year, having previously forecast growth of 0.5 per cent.