German economy to see sharp slowdown in Q2: Bundesbank Report

Bundesbank, in its latest monthly report, released on Monday said that Germany's economic growth is likely to slow sharply in the second quarter before rebounding later in the year and returning to a solid growth path.

The central bank noted that Germany's growth will dip compared to the first quarter due to lower industrial export orders and fluctuations in the construction sector and as the positive impact of a relatively warm winter wears off.

Bundesbank forecasts full year growth of 1.7 percent, in line with last year's figure, matching the government's growth forecast. The central bank said ECB's stimulus measures will add between 0.1 percent and 1 percent to inflation per year between 2016 and 2018.

“The positive sentiment indicated by corporate and household surveys suggest that economic growth after a weak second quarter should increase again over the next six months,” the central bank said.