The German economy could shrink by more than 5 per cent this year, the country's finance minister said yesterday, pouring cold water on talk of an imminent return to positive growth.
Speaking after a meeting of 40 business representatives, bankers, economists and trade unionists with Angela Merkel, the chancellor, and cabinet ministers, Peer Steinbrück said the country's dismal economic performance in the past six months had made “a five before the comma not unlikely”.
The minister was referring to the release of the government's latest gross domestic product growth forecast for 2009 next Wednesday.
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