German think tanks dampen the country’s growth outlook

City A.M. Reporter
GERMANY’S leading economic institutes have cut their growth forecasts for Europe’s largest economy to 0.8 per cent this year and to one per cent in 2013, the business daily Handelsblatt said yesterday.

These figures compare with the institutes’ previous spring forecasts of 0.9 per cent growth for 2012 and two per cent for 2013.

The four institutes are due to announce their revised growth forecasts today.

They have said that their revised expectations are due to the ongoing Eurozone debt crisis, and poor demand from other regions.

Citing confidential sources, the newspaper said the institutes expect the Eurozone to overcome its sovereign debt crisis next year and that German unemployment will continue to fall.