Business News
Germany reduces 2012 growth forecast to 0.7 per cent
Jan 18, 2012, 11:02 GMT
Berlin - Germany cut its forecast for economic growth this year to 0.7 per cent Wednesday, scrapping an earlier Economics Ministry prediction of 1.0 per cent in 2012.
The estimate remains higher than the average forecast among independent economists, who have argued that the economy is likely to grow even less, by 0.5 per cent, with a contraction lasting through the first half.
The slowdown follows two high-growth years where exports have roared ahead, domestic demand has solidified and a record employment figures. But key export markets have now been hit, with several of the eurozone nations mired in recession.
The ministry's economic report said its forecast was based on the assumption that the sovereign-debt crisis would be fixed this year.
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