Bundesbank Slashes 2013 German Growth Forecast to 0.4% on

The Bundesbank sliced more than 1 percentage point off its forecast for economic expansion in Germany next year after the sovereign debt crisis pushed the euro area into recession and global growth slowed.

The Bundesbank cut its 2013 projection to 0.4 percent from the 1.6 percent predicted in June and said the economy, Europe’s largest, will grow 0.7 percent this year, down from its previous forecast of 1 percent. Separately, the German Economy Ministry said industrial output fell 2.6 percent in October as investment goods production and construction activity slumped.