01/10/2009 05:12 am ET Updated May 25, 2011

Germany's Recession: Could Be Worst In Its History

Germany could be set to face the worst recession in its history, an economic research group forecast Wednesday, Dec. 10. The announcement comes after the World Bank predicted a sharper global downturn.

The Rhineland-Westphalia Institute for Economic Research (RWI), a leading German economic research organization, said in a statement that Germany, Europe's largest economy, would see gross domestic product (GDP) shrink 2 percent next year.

In September, RWI had forecast growth of 0.7 percent in Germany for 2009, but downscaled this prediction after factoring in recent events in world-wide financial sectors.

"The reasoning is that the financial crisis is taking a wider toll on the economy than previously anticipated," the Essen-based group said.

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