German officials have downgraded growth expectations for 2012 from 1.8 percent growth to a mere 1 percent expansion. The reduced outlook is due to heightened uncertainty with respect to the Eurozone debt crisis and weaker demand for Germany’s exports in the U.S. because of its own limited growth prospects for the upcoming year.
The news comes at the worst time as any slowdown in Germany will have a negative impact on the entire Eurozone region. As the area’s largest economy, Germany is expected to lead a Eurozone recovery; weaker growth in Germany will reduce Germany’s ability to meet this goal.
Source: The Canadian Press