The government expected gross domestic product (GDP) to increase by 2.6 per cent this year.
In April, a rise of 3.5 per cent had been predicted.
The long-term prospects look better, however, with the Federal Government now expecting growth of 4.1 per cent instead of the previous 3.6 per cent in 2022.
“If the supply bottlenecks gradually disappear, there will be significant catch-up effects in 2022,’’ he said.
The German government also expects the inflation rate to return to a significantly lower level as early as the turn of the year.