Recession could be double previous predictions
AFP - [email protected]
Published: 24 Mar, 2009 CET.
Updated: Tue 24 Mar 2009 08:00 CET
Germany's gross domestic product (GDP) is expected to contract by 4.0 to 4.5 percent this year, according to an internal Economy Ministry report cited by daily Bild on Tuesday.
The ministry in January was forecasting a contraction of only 2.25 percent for the year, but the government already has acknowledged that the forecast is outdated and a new estimate is due out next month.
In its monthly report released on Monday, Germany's central bank said: "The global economy's sharp slowdown is affecting German economic production more and more."
Economists have been lowering their forecasts, with Germany's second biggest bank, Commerzbank, saying on Monday that the economy was set for a much sharper recession than previously expected this year and could contract by up to 7.0 percent.
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The ministry in January was forecasting a contraction of only 2.25 percent for the year, but the government already has acknowledged that the forecast is outdated and a new estimate is due out next month.
In its monthly report released on Monday, Germany's central bank said: "The global economy's sharp slowdown is affecting German economic production more and more."
Economists have been lowering their forecasts, with Germany's second biggest bank, Commerzbank, saying on Monday that the economy was set for a much sharper recession than previously expected this year and could contract by up to 7.0 percent.
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