Slowdown in Germany adds to eurozone's woes

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Growth in the German economy all but ground to a halt between April and June, official data revealed yesterday, deepening the crisis in the debt-laden eurozone. The German statistics office said the bloc's largest economy expanded by just 0.1 per cent in the second quarter. It also warned that growth between January and March was lower than previously thought – 1.3 per cent against its initial estimate of 1.5 per cent.

The grim figures add to fears that the world economy is slowing, compounding the challenge for governments with large debt piles. Europe's leaders, in particular, must cut borrowing to placate restless bond markets while ensuring that austerity measures do not choke off the recovery.