Global financial crisis means lower growth forecast in Germany

The German government will have to “markedly revise downward” its economic growth forecast for 2009, due to the world financial crisis, Economy Minister Michael Glos said Saturday.

The 2009 growth estimate is currently at 1.2 percent, but Glos did not say what the new forecast would be.

The German economy is going to face difficulty from the fallout of the global financial crisis, Glos said in an article in the popular daily Bild. “We are going to have to markedly revise downward our (growth) forecast for next year,” Glos said.

The government’s official growth forecasts are scheduled to be released on October 16.

Weekly magazine Der Spiegel, citing experts in the economy ministry, reported last week that the new 2009 estimate would be only 0.5 percent growth in Europe’s largest economy.