Germany sees growth slowing to 1.0-1.1% in 2012: report

19th October 2011, Comments 0 comments

The German government is set to slash its growth forecast for next year to 1.0-1.1 percent from 1.8 percent previously, the daily Sueddeutsche Zeitung reported Wednesday, quoting government sources.

Berlin is scheduled to publish its updated economic forecasts on Thursday, but last week, the country's leading economic think-tanks cut their 2012 forecast to a mere 0.8 percent from 2.0 percent previously as the eurozone's debt crisis undercuts activity.

The government is downgrading its prognosis because it believes a global slowdown will hurt German exports, the newspaper said.

Europe's powerhouse economy recovered from the last crisis better than most. After a crippling recession where output contracted by around five percent in 2009, Germany bounced back with spectacular growth of 3.7 percent last year.

This year, the German government is pencilling in growth of 2.6 percent.

© 2011 AFP

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