Germany cuts 2012 growth forecast

Germany has cut its economic growth forecast over fears its exports will slow, the BBC reports.

The government is now predicting economic growth of 1% for 2012, down from its previous forecast of 1.8%. It has also marginally cut its growth forecast for this year from 3% to 2.9%. Last week, Germany's leading economic institutes predicted that growth would slow to almost zero in the fourth quarter of 2011 and the first quarter of 2012, just narrowly avoiding a technical recession. Germany expects to see exports rise by 7.5% this year but just 3.5% in 2012. Eurozone leaders including German Chancellor Angela Merkel are meeting in Brussels this weekend to try to hammer out a solu...