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Germany Just Slashed Its Growth Forecasts In Half

Mike BirdDec 5, 2014, 14:54 IST

Despite some positive numbers on factory orders this morning, Europe's biggest economy looks to be slowing down at a pretty fast pace. The Bundesbank, Germany's central bank, just slashed its growth forecasts for the economy.

Growth in 2015 is expected to be just 1%, half of the 2% that was expected previously.

Here's the Bundesbank:

The run-through is pretty grim. Underlying industrial output is described as "stagnant" and the bank notes that business investment hasn't really materialised, after getting a boost at the end of 2013.

In the last quarter, German GDP grew by only 0.1%, but the powerhouse economy's politicians and monetary policymakers are still pretty much staunchly against any extra stimulus.