The German government expects growth to slow to 1.2 percent in 2009, according to The Frankfurter Allgemeine Zeitung. The paper, citing government sources, said that the government would keep its forecasted growth of 1.7% in 2008.

 

A panel of leading economic institutes this week revised down their joint forecast for German economic growth for this year to 1.8 percent from their previous forecast of 2.2 percent.

 

The government will publish its latest forecast for growth on Thursday and it usually takes the institutes' projections into consideration. The downward revision is in response to a weaker global economy and low consumer spending.

 

Earlier, Germany's Economy Ministry said it expected moderate economic activity in coming months after a strong start to the year.