German government forecasts country’s economy will shrink by 0.4% this year

The economy ministry said it expected things to pick up around the turn of the year (Michael Probst/AP)

Germany’s government has said it expects the country’s economy to shrink by 0.4% this year, joining a string of other forecasters in revising sharply downwards its outlook for Europe’s biggest economy.

The revised forecast contrasted with the 0.4% growth that the government predicted in late April.