The Bundesbank has halved its forecast for German growth next year to 1 percent raising concerns the eurozone economy will continue to stagnate.
Germany’s central bank now predicts the country’s economy will expand 1.4 percent this year, 1 percent in 2015 and 1.6 percent in 2016. Back in June it predicted a growth of 1.9 percent for this year.
The projections show officials believe the outlook will improve but at a pace so modest it is unlikely to provide much of an economic boost across the region.
“There is reason to hope the current sluggish phase will prove to be shortlived,” said Bundesbank president Jens Weidmann.