Bundesbank forecasts that German growth will soften this quarter

|By:, SA News Editor

The Bundesbank expects Germany's economy to slow in Q2 after unusually mild weather boosted growth in Q1, when GDP expanded 0.8% on quarter and an annualized 3.3%.

The bank believes domestic demand will be the main driver of the economy, but it warned about economic risks in some emerging markets and geopolitical uncertainty in Eastern Europe.

However, the weaker expansion "should not be interpreted as a slowdown in the underlying economic momentum," the bank said.

The euro is +0.1% at $1.3707, while the DAX is -0.8%.

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