Germany will grow at a slightly slower pace than previously expected, its central bank predicted today as it cut its forecasts for Europe's top economy.
The Bundesbank said the powerhouse German economy would expand by 1.7% this year, slowing to 1.4% in 2017. This was a downgrade of previous forecasts of 1.8% and 1.7% respectively.
Nevertheless, the bank's head, Jens Weidmann, said the German economy stood on a "relatively firm" footing.
The bank said it expected the economy to grow by 1.8% in 2018.
Exports, long the bedrock of the German economy, are only providing a "limited" push but "should pick up" in coming years, Weidmann predicted.
The latest forecast brings the central bank into line with the German government's 2016 forecast, which is slightly more optimistic than the International Monetary Fund with a 1.5% growth estimate and German economics institutes which expect 1.6%.
German inflation is expected to remain subdued this year, the Bundesbank said, with consumer prices rising by just 0.2%, accelerating to 1.5% next year and 1.7% in 2018.
