Germany Cuts Growth Forecast

The lagging effect of the european crisis has finally caught up with Germany. The economy ministry has reduced the growth expectations from 1.6 percent to 1 percent.

Two years after expanding at its fastest rate since reunification, Germany's economic growth is seen at just 1 percent next year, finally hit by the euro zone crisis that has hammered most of its partners.

The government chopped its 2013 growth forecast on Wednesday to 1 percent, down from a 1.6 percent forecast in April.

For this year, the economy ministry expects growth of 0.8 percent, up from 0.7 percent in April.

Germany's economy powered through the first two years of the euro zone's sovereign debt crisis, posting 4.2 percent growth in 2010 and 3 percent last year at a time when some peers were seeking bailouts and others were grinding to a halt.

Its export strength saved the currency bloc from falling into recession up until the second half of this year.

via CNBC

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