German Economy Ministry Denies Report Economy to Shrink 2%

By Aaron Kirchfeld

Dec. 14 (Bloomberg) -- The German Economy Ministry denied a report in Der Spiegel magazine that the government predicts the economy will contract 2 percent next year.

Economy Minister Michael Glos said such figures are “pure speculation,” spokeswoman Beatrix Brodkorb said today by phone, confirming comments Glos made to Bild am Sonntag newspaper.

Der Spiegel reported yesterday that the government expects a “deep” recession in 2009, citing a draft of an annual economic report due to be published at the beginning of next year. Glos said no such draft exists.

Chancellor Angela Merkel’s government in October slashed its growth forecast for Europe’s biggest economy, saying that gross domestic product will expand 0.2 percent in 2009 as global markets for exports dry up.

To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net