German Central Bank Slashes 2013 Growth Forecast

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BERLIN (AP) — Germany’s central bank has sharply cut its 2013 growth forecast to 0.4 per cent from 1.6 per cent amid continuing concerns about the European economy.The Bundesbank on Friday also lowered its forecast for 2012 growth to 0.7 per cent from the 1 per cent it predicted in June. It’s expecting a rebound to 1.9 per cent growth in 2014.

The government is predicting 0.8 per cent growth this year and 1 per cent growth in 2012.

The eurozone is in recession and the news comes a day after the European Central Bank said it expects that to continue next year, cutting its 2013 forecast for the 17-nation bloc from 0.5 per cent growth to a 0.3 per cent decline.

Germany’s export-driven economy has been slowing as amid falling orders from the eurozone though it’s making up ground elsewhere.