Germany cuts 2013 growth forecast to 1% on eurozone woes

Germany, Europe's largest economy, has slashed its economic growth forecast for 2013 citing looming eurozone debt crisis, and the slowdown in emerging markets, which have already pushed many of its partners into recession.

Economy minister Philipp Roesler said yesterday in Berlin that the country's gross domestic product (GDP) will grow at a slower pace of 1 per cent in 2013, down from the earlier estimate of 1.6 per cent.

However, the minister has raised the growth forecast for the current year to 0.8 per cent from the previous 0.7 per cent.

The revised projections are in line with the forecasts last week by Germany's think-tanks.

 "Germany is traversing stormy waters of the European sovereign debt crisis and economic weakening in emerging nations in Asia and Latin America," Roesler said.

"The good news is that the German economy continues to grow," he said, "the German economy is in good shape and is still structurally on a solid foundation".