German central bank: Economy to stagnate in 2010

[June 05, 2009]  FRANKFURT (AP) -- Germany's economy will shrink by 6.2 percent this year and stagnate in 2010, the country's central bank said Friday, delivering a forecast more pessimistic than that of the government.

The government forecast in late April that the country's economy, Europe's biggest, would contract by a post-World War II record of 6 percent this year but would return to growth -- albeit feeble -- of 0.5 percent next year.

However, the Bundesbank -- the central bank -- said it expects zero growth in 2010.

Germany's economy grew 1.3 percent in 2008, about half as much as the previous year. The country went into recession in last year's third quarter.

[Associated Press]

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.