German Economics Minister Sigmar Gabriel said Berlin expected gross domestic product (GDP) to expand by only 1.2 percent in 2014, down from an earlier estimate of 1.8 percent.  Germany’s leading economists blame stalled recovery in the eurozone for Germany’s troubles.

In addition, the planned introduction of a national minimum wage and higher pensions outlays adopted by the government recently would further throttle growth, they said.

After robust growth of 0.8 percent in the first quarter of this year, the German economy slipped back, contracting by 0.2 percent between April and June. As the government is waiting for third-quarter growth figures, due to be released later this month, Economics Minister Gabriel said he did not expect the economy to contract again.

Pointing to the robust state of the German labor market, with its low unemployment, he said: “This is the foundation on which higher wages and increased household spending will continue to rest.”

As Gabriel banks on rising consumption to prop up the German economy in the remaining months of 2014, some think the government should boost higher speniding for higher growth.  Finance Minister Wolfgang Schauble has resisted such calls.  But ther eurozone member want Germany to open the public purse and allow partners in the currency area higher budget deficits to spur growth..