German Economy Minister Michael Glossaid Wednesday that the German economy, the biggest in Europe, is likely to grow less than 2 percent as previously estimated.

    Glos told the German weekly Bild that the risks to the German economy, largely caused by the U.S. subprime mortgage crisis and high energy prices, "have become larger."

    "The recovery (of the German economy) will continue, but growth will be slower than in 2007," said Glos.

    Glos's remarks came as Germany's business confidence dropped to the lowest point in two years after the country emerged from a lengthy economic stagnation.

    The Munich-based Ifo Institute announced in December that its monthly business confidence indicator slipped from November's 104.2 to 103.0, the lowest since January 2006.

    In October, the government cut its forecast for 2008 growth rate from 2.4 percent to 2 percent.