While earlier in the year many forecasters had expected Germany to grow by around 2 per cent this year, many have recently lowered the forecast to closer to 1. 5 per cent. "A flurry of unfavorable news reports relating to the international environment have dampened Germany's economic outlook in the second half of the year," the Bundesbank said in its monthly bulletin. "Current indicators cast doubt on the assumption on which the spring forecasts were based, namely that the underlying cyclical trend would strengthen further in the second half of 2014," the bank said. "The fact that the order flow declined perceptibly over the course of the second quarter and export expectations have dropped suggests that the industrial economy will be especially hard hit by the disruptive external factors," the bank said.
Read more here: Business Spectator