German central bank slashes growth forecasts

Berlin - Germany's central bank cuts its growth outlook for Europe's biggest economy, halving its projection for next year.

The Bundesbank expects gross domestic product to expand 1.4% this year instead of the 1.9% it predicted in June.

The economy should then slow to 1% next year before regaining momentum to expand 1.6% in 2016, the Bundesbank says in its half-yearly report.

These projections are down from growth of 2% and 1.8% the bank previously forecast for 2015 and 2016, respectively.