The German government has sharply cut its economic growth forecast for this year and next, citing “external” factors for the revision.
It now expects growth this year to be 1.2%, down from its previous estimate of 1.8%. Next year, it expects the economy to grow by 1.3%, down from 2%.
A slowdown in the eurozone economy has hit German exports in recent months.
Economy Minister Sigmar Gabriel said there was no reason for the government to change its economic policies.
The German economy – Europe’s largest – contracted by 0.2% between April and June this year, while figures released last week showed that exports fell by 5.8% in August, the largest monthly drop in five years.
These followed weak industrial output figures and recent surveys showing a fall in business confidence.
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