(Reuters) – The German government will lower its forecast for gross domestic product (GDP) to a contraction of 0.3% this year, Bloomberg reported on Wednesday, citing people familiar with the matter.
German GDP will contract in the third quarter and increase only slightly in the last three months of the year, according to sources cited by Bloomberg.
Berlin is currently counting on economic growth of 0.4% for the whole year, according to its forecasts provided in April.
The German Economy Ministry was not immediately available for comment.
According to Bloomberg, the new projections mentioned are likely to be further modified before the publication of the government’s autumn forecasts next month.
Earlier this week, the European Commission reduced its forecast for the German economy with GDP expected to contract by 0.4% this year, compared to growth of 0.2% previously forecast.
German economic institutes such as Ifo and DIW also forecast a contraction of 0.4% this year.
(Reporting Urvi Dugar in Bangalore; Nathan Vifflin, edited by Blandine Hénault)
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