Germany's central bank trimmed its forecasts for the country's GDP through 2019 as growth momentum across the eurozone faces moderation.
Deutsche Bundesbank now projects calendar-adjusted GDP growth in Germany to reach 1.5% in 2018, down from a June projection of 2.0%. Germany logged its first quarterly contraction since 2015 in the third quarter due to weaker exports.
The automobile sector was hit in particular amid new EU-wide rules on exhaust emissions, the central bank said, adding that such factors are likely temporary.
For 2019, the central bank forecasts GDP to expand 1.6%, down from a prior estimate of 1.9%.
Inflation is estimated to come in at 1.9% for 2018, compared with a previous forecast of 1.8%. Harmonized consumer prices are expected to rise 1.4% in 2019, down from a prior estimate of 1.7%.
The European Central Bank on Dec. 13 slashed its GDP growth outlook for the single-currency area to 1.9% in 2018 and 1.7% in 2019, citing political tensions and the threat of trade protectionism.