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.