The Bundesbank, Germany's central bank, reduced its forecast of GDP growth in the country for this year and 2013, according to a statement released today. The Bundesbank now expects that the largest economy in Europe will grow only 0.7% in 2012, down from the previously anticipated 1%. For 2013, that estimate was cut more drastically, to 0.4% from the former 1.6%.
In its statement, the central bank attributed much of this to "the difficult economic situation in some euro-area countries and widespread uncertainty."
An eventual recovery is expected; 2014 GDP growth is anticipated to be 1.9%, but only "if the euro-area banking and sovereign debt crisis does not escalate further and uncertainty among investors and consumers gradually subsides."
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.