In a year of Germany new recession threatens

In the end 2010 – the beginning of 2011 in Germany the repeated recession caused by a cancelling of the additional State expenditure can begin, the economic adviser of the German government has declared on Thursday.

Advising the government on economic questions Peter has told, that refusal of financial measures of support will threaten growth.

” In my opinion, problems will begin in second half of 2010 because during this period the government should cancel financial stimulus. I think, that… This output will not be accompanied yet by high private investments and high private demand and consequently I see risk of repeated recession by the end 2010 – to the beginning of 2011 “, – it has noted, “LEAGUE” informs.

The economy of Germany largest in  euro zone, has left recession in the second quarter 2009. Its development was accelerated in the third quarter when gross national product has grown on 0,7 % in quarter calculation.

Last week five economic advisers have predicted growth of economy of Germany on 1,6 % in 2010 after record reduction on 5,0 % in current to year, and have called the government to demand more persistently from banks of strengthening of their capital base.

Bofinger  also believes, that the European Central Bank will not raise the official key rate from record-breaking low level in 1 % annual in the following of 12 months, but then will start to push market rates overnight above this level.