The Deutsche Bundesbank has cut German forecasts for this year and next, and now sees growth in 2013 at 0.3 per cent (down from 0.4 per cent in December). Prospects of recovery next year also seem likely, with growth in 2014 estimated at 1.5 per cent (down from 1.9 per cent in December).
It was noted that risks to this forecast are largely on the downside, and that there had been some weakness of the export-oriented sectors.
Bundesbank president Jens Weidmann:
Much will depend on whether the economic situation stabilises in the euro-area crisis countries and whether expansionary forces will gradually gain the upper hand there.
A sustained upturn in the world economy is just as important as a precondition for the growth path we have assumed.
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