Friday, December 7, 2012

German central bank cuts 2013 growth forecast

(AP) ? Germany's central bank has sharply cut its 2013 growth forecast to 0.4 percent from 1.6 percent amid continuing concerns about the European economy.

The Bundesbank on Friday also lowered its forecast for 2012 growth to 0.7 percent from the 1 percent it predicted in June. It's expecting a rebound to 1.9 percent growth in 2014.

The government is predicting 0.8 percent growth this year and 1 percent 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 percent growth to a 0.3 percent decline.

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

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2012-12-07-Germany-Economy/id-e7c80d22486b4a69ae288753a6a61d0c

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