The German Council of Economic Experts (GCEE) lowered its growth forecast on Wednesday. The German economy is expected to expand 1.5% in 2016, down from its previous estimate of 1.6%, and 1.6% in 2017.

The downward revision was driven by weaker external demand.

Eurozone's inflation is expected to be 0.2% in 2016, down from its previous forecast of 1.1%, and 1.1% in 2017.

The experts expects the economy in Germany to continue to expand, driven by consumer spending, expansionary fiscal policy, and monetary policy.

The GCEE noted that investors expected longer period of low interest rates.

According to the experts, there are risks to the global outlook from the slowdown in emerging economies, turmoil on global financial markets, geopolitical conflicts, the resurgence of the euro crisis and possible Britain's exit from the European Union.