Germany trims 2015 growth outlook

The German government Wednesday slightly trimmed its 2015 growth forecast due to the slowdown in emerging economies, but said domestic consumption would likely more than offset the external weakness.

Output growth was now expected to reach 1.7 percent for 2015, and 1.8 percent for 2016, said Economy Minister Sigmar Gabriel, who six months ago had predicted growth for both years at 1.8 percent.

Gabriel said the German economy was expected to power ahead as strong domestic consumption outweighs "gloomier global growth outlook due to slowing growth in China and in raw materials-rich emerging countries".

However, "the biggest challenge for Germany is the high numbers of refugees migrating here from crisis zones," said Gabriel, who is also vice chancellor.

"Given the coming winter, these people must be quickly given humane lodgings" and be integrated into society, he said.

"On this, investments in education and training are key," said Gabriel.

Germany is expecting to host between 800,000 and 1 million new arrivals this year, and local authorities are struggling to cope with the sudden surge.

But the government has said its economy is solid enough to absorb the newcomers.