German BuBa cuts GDP forecasts
The German regulator has substanially lowered its growth forecasts for German economy in its semi-annual report. GDP growth projections were revised down to 1.4% in 2014, 1.0% in 2015 and 1.6% in 2016, the Bundesbank announced on Friday. According to the previous forecasts, German economy was expected to grow by 1.9% this year, 2.0% next year and 1.8% in 2016.
“Following a brisk start to the year, which was due in part to the very mild winter, the German economy subsequently lost momentum to a surprising extent”, Bundesbank admits.