Michael Glos, economics minister, said: “We are foreseeing an improvement by the middle of the year.” He said Axel Weber, president of the Bundesbank, had presented an even more optimistic forecast to the cabinet yesterday.
According to its quarterly projections, the government expects the worst of the downturn to have happened in the last quarter of 2008 and in the three months to April.
It is forecasting steady growth every quarter between April and December. However, the decline in activity in the half-year since the autumn has been so sharp that the modest rebound would not be enough to offset it when averaging quarterly growth figures for the whole year.
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