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IMF to slash German 09 GDP target to -5 pct -report

Published 04/10/2009, 09:42 AM
Updated 04/10/2009, 09:56 AM
TGT
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BERLIN, April 10 (Reuters) - The International Monetary Fund (IMF) will revise down its forecast for Germany's gross domestic product (GDP) in 2009 to show a contraction of five percent, German news magazine Der Spiegel reported on Friday.

In an advance text of an article to appear in its next edition, Der Spiegel said the IMF would publish the new forecast in late April. Unemployment and the state's budget deficit would also rise accordingly to levels higher than previously forecast.

In January, the IMF cut its 2009 forecast for Germany, Europe's largest economy, to a decline of 2.5 percent from a November forecast of an 0.8 percent contraction for 2009.

In March, Finance Minister Peer Steinbrueck said the government would not be able to keep its own forecast for the economy to contract by 2.25 percent this year. The government will publish its revised 2009 forecast on April 29.

Der Spiegel also reported Germany's council of economic advisers would also cut its 2009 GDP forecast to a similar level as the IMF forecast when it publishes its annual spring report.

(Reporting by Erik Kirschbaum)

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