German govt slashes GDP growth forecast as extended lockdown bites

The German government on Wednesday slashed its growth forecast for Europe’s largest economy to 3% this year, a sharp downward revision from last autumn’s estimate of 4.4% caused by a second coronavirus lockdown. “We are currently seeing a flattening of the number of infections, which is giving hope,” Economy Minister Peter Altmaier said, but he cautioned that the situation remained serious due to a more infectious virus variant. “We must therefore not gamble away what has been achieved,” Altmaier said against the backdrop of calls to ease lockdown measures soon.