Germany's Bundesbank halved its 2015 growth forecast for Europe's largest economy on Friday and also trimmed its estimate for this year, though its president said there were signs that current weakness would soon be overcome.

In bi-annual projections, the bank said it expected the economy to expand by 1 per cent next year, compared with its June estimate of 2 per cent

It also cut its prediction for 2014 growth to 1.4 per cent from 1.9 per cent in June.

The bank said it saw gross domestic product (GDP) increasing by 1.6 per cent in 2016, trimming its forecast from 1.8 per cent in June.

"However, there is reason to hope that the current sluggish phase will prove to be short-lived," Bundesbank president Jens Weidmann said in a statement, adding that opportunities abroad would likely increase again next year.

Reuters