German economy to contract 4.5 percent: report

Germany's gross domestic product GDP will contract by 4.0 to 4.5 percent this year, according to an internal economy ministry report cited by the Bild newspaper 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a contraction of only 2.25 percent for the year, but the government already has acknowledged that the forecast is outdated and a new estimate is due out next month.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.







Malaysia" festival in Kuala Lumpur. REUTERS/Zainal Abd Halim

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