German economic institutes cut 2013 growth forecast

Germany's leading economic thinktanks on Thursday cut their 2013 growth forecast by half to 0.4 percent, but said domestic demand and better global climate will help Europe's biggest economy to rebound in 2014. A report by Germany's leading economic institutes, including Ifo, DIW, IW and RWI, said German economy would grow only 0.4 percent this year and 1.8 percent in 2014. In a report issued in April, the same institutes forecast that the economic growth this year and the next would be 0.8 percent and 1.9 percent respectively. However, the report said German economy remained strong thanks to increasing employment and improving conditions of the eurozone debt crisis. The institutes said the country's economy would be driven upwards by domestic demand while improving global economic climate and decreasing uncertainty would also fuel investment. German economy grew by 0.7 percent in the second quarter of 2013, following a stagnation in the first three months. Over the year of 2012, the economy was up by 0.7 percent. In 2010 and 2011, however, it expanded by 4.0 percent and 3.3 percent respectively. Currently, German government expected that German economy would grow by 0.5 percent in 2013, and by 1.6 percent in 2014.