Germany cuts growth forecasts

<p>Growth forecasts for Germany have been cut.</p>

The German central bank has cut its growth forecasts for the country's economy.

Bundesbank stated it expects the German economy to grow by just 0.3 per cent during 2013, which is down from its earlier prediction of 0.4 per cent.

Its 2014 growth forecast has also been revised down. It previously claimed there would be 1.9 per cent growth next year, but now says this will be just 1.5 per cent.

"In the euro area the economy appears to be bottoming out. Nevertheless, the Bundesbank sees continuing structural problems as standing in the way of a rapid improvement," a statement from the German central bank said.

Germany is thought to be one of the strongest economies in Europe and has recovered from the global financial downturn better than most of the continent's other major powers.

Chinese premier Li Keqiang stated on a visit to Berlin last month that he is hoping China and Germany can team up and work together to form an economic "dream team".

Learn about the Asian markets and CFD trading at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.