G7: ECB's Weber: German 1Q GDP Down At Least 3% On Quarter
24 April 2009 - 4:29PM
Dow Jones News
Germany's gross domestic product will contract by at least 3% in
the first quarter from the previous period as the global economy is
mired in a deep recession, European Central Bank governing council
member Axel Weber said Friday.
Weber, speaking ahead of a meeting in Washington of finance
ministers and central bank governors from the Group of Seven
leading economies, said he doesn't expect a "dynamic recovery" for
the euro-zone economy, but there should be some improvement next
year.
He said there is no risk of deflation or sustained falls in
consumer prices in the euro zone.
But Germany's consumer price index may fall for a few months
starting in May, before picking up again in the second half of
2009.
German Deputy Finance Minister Joerg Asmussen, speaking at the
same event, reiterated that the government isn't considering a
third fiscal stimulus plan to supplement the previous two fiscal
stimulus packages for this year and next, which amount to roughly
EUR80 billion.
Asmussen represents the German Finance Ministry at the meeting
in Washington as Finance Minister Peer Steinbrueck canceled to
attend a regional event of his Social Democratic Party in
Germany.
-By Peter Trautmann and Nina Koeppen, Dow Jones Newswires; +49
(0)69 2972 5509; nina.koeppen@dowjones.com