The German central bank slashed Friday its growth forecasts for Europe's biggest economy next year as recession and fiscal austerity takes hold across the eurozone, dpa reported. The Bundesbank now expects 0.4 per cent growth in 2013 - down from its June forecast of 1.6 per cent. Instead of its previous forecast of a 1-per-cent expansion this year, the Bundesbank projects growth of 0.7 per cent as the economy contracts in the final three months of 2012. The 17-member eurozone lurched back into the recession during the third quarter as governments cut spending to trim high deficit-and-debt levels. The Bundesbank expects the German economy to rebound in 2014 to post an expansion rate of 1.9 per cent.
