Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland
Advertisement

Berlin predicts long and bleak recession

Share this article

Berlin predicts long and bleak recession
Hamburg's port. Photo: DPA
13:12 CET+01:00
The German Finance Ministry on Friday warned in its monthly report that it anticipates a long-lasting and deep recession due to worsening industrial conditions and glum business sentiment.

The German government is forecasting Europe's largest economy to shrink by 2.25 percent this year.

“With that, the Federal Republic of Germany will go through one of the worst recessions in its existence,” Finance Ministry official Jörg Asmussen said in the report, adding that the country's economy had performed far worse than expected in the fourth quarter of 2008.

“Based on the leading indicators we expect the gross domestic product (GDP) will decline in the first quarter of 2009,” Asmussen said.

Meanwhile the ministry said that the export sector would remain bleak as demand for goods from Germany slumps in the face of the ongoing global economic crisis.

As the economy shrinks, the country's job market will also suffer as businesses lay off more workers to reduce their output, the ministry report concluded.

Europe's Leading Job Site for
International Talent - The Local Jobs
Get notified about breaking news on The Local

Share this article

Advertisement

From our sponsors

The business school where students graduate with a ready-made network

Networking and business go hand-in-hand, but how do you go about building a network to begin with?

Advertisement
Advertisement
Jobs
Click here to start your job search
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement