Germany slashes growth forecast by .8%

Germany has sharply lowered its growth forecast for next year to 1%, from 1.8 % previously, because of the impact of uncertainty in financial markets.

Economy Minister Philipp Roesler said today that despite the slowdown, the country is not headed for recession.

Mr Roesler says Germany’s gross domestic product for this year would reach 2.9%, above the 2.6% forecast in April.