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| German economy 'to shrink by 6%' | German economy 'to shrink by 6%' |
| (about 3 hours later) | |
| Germany's economy will shrink by 6% this year and continue to contract in 2010 according to a forecast from the country's leading economic think tanks. | Germany's economy will shrink by 6% this year and continue to contract in 2010 according to a forecast from the country's leading economic think tanks. |
| The estimates, compiled by eight institutes for the German Economy Ministry, also predicts that the rate of unemployment will hit 10% next year. | The estimates, compiled by eight institutes for the German Economy Ministry, also predicts that the rate of unemployment will hit 10% next year. |
| The gloomy forecast chimes with that of the IMF, which shows the German economy contracting by 5.6% this year. | The gloomy forecast chimes with that of the IMF, which shows the German economy contracting by 5.6% this year. |
| This is faster than any other major economy apart from Japan, says the IMF. | This is faster than any other major economy apart from Japan, says the IMF. |
| Severe contraction | Severe contraction |
| The latest twice-yearly forecast shows just how rapidly the outlook for the German economy has deteriorated. | The latest twice-yearly forecast shows just how rapidly the outlook for the German economy has deteriorated. |
| The think tank's previous forecast predicted economic growth of 0.2% for this year. | The think tank's previous forecast predicted economic growth of 0.2% for this year. |
| The deepening global downturn now means the group sees a severe economic contraction this year and a further shrinkage of 0.5% next year. | The deepening global downturn now means the group sees a severe economic contraction this year and a further shrinkage of 0.5% next year. |
| The IMF is forecasting a contraction in the German economy of 1% in 2010. | The IMF is forecasting a contraction in the German economy of 1% in 2010. |
| Comments by some of Germany's largest companies confirmed the bleak outlook for the country's economy. | |
| "It will probably take five years before demand is back to its pre-crisis level in 2007," said Karl-Thomas Neumann, boss of car parts firm Continental. | |
| The chief of rival Robert Bosch, Franz Fehrenbach, said: "We expect to see a deep recession until well into 2009." | |
| The report for the Economy Ministry also forecasts a fall in exports of 22.6%, compared with its prediction of a rise of 0.1% made just six months ago. | The report for the Economy Ministry also forecasts a fall in exports of 22.6%, compared with its prediction of a rise of 0.1% made just six months ago. |
| Germany is world's largest exporter. | Germany is world's largest exporter. |
| Unemployment, the report says, will hit 10.8% in 2010. | Unemployment, the report says, will hit 10.8% in 2010. |
| The IMF forecast sees the Japanese economy contracting by 6.2% this year before growing by 0.2% next year. | The IMF forecast sees the Japanese economy contracting by 6.2% this year before growing by 0.2% next year. |