The German government has lowered its 2008 growth forecast, as expected, to 1.7% from a previous 2% owing to a slowdown of the US economy and international credit market turmoil.
Chancellor Angela Merkel had already revealed the new figure during a radio interview on Tuesday.
After expanding by 2.5% last year, the biggest euro zone economy is to slow markedly, with the financial sector in particular feeling the effects of the crisis in the US mortgage market along with turmoil on stock markets.
Economy Minister Michael Glos said Germany was 'on the right path' with 'growth that will benefit all' and a balanced budget.
The government expects unemployment to decrease further this year to 8.2%, after a significant drop to 9% in late 2007.
