Germany's federal government has cut its economic forecasts, with Europe's largest economy now facing a second straight year of recession as hopes of a consumption-led recovery fade.
The government sees the economy shrinking by 0.2 percent this year, a significant downward revision from its previous estimate of 0.3 percent growth.
The German economy is the only advanced economy in the world to contract in 2023, affected by a slowdown in industry, export demand and higher energy prices after Russia's invasion of Ukraine. In recent months, the recovery has appeared to be driven by falling inflation and an increasingly distant interest rate cut by the European Central Bank this year, as demand remains weak at home and abroad.
