(MENAFN) In the face of an emerging market slowdown that is reducing exports, Germany has pulled down its growth forecast for 2016, according to the latest reports.
Additionally, this move leaves domestic demand as the sole pillar of support for Europe's largest economy this year, thus putting huge pressure on the government.
In its annual economic report, the nation forecasts private consumption and state spending to drive economic growth by 1.7pct this year, on a par with the 2015 performance.
Moreover, Berlin anticipates imports to rise at a faster rate than exports over 2016, meaning gross foreign trade is likely to clip off 0.4 percentage points of economic growth.
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