The German economy is not expected to grow before the second half of 2010, European Central Bank Governing Council member Axel Weber said Monday, repeating his view expressed in an interview with German newspaper Frankfurter Allgemeine during late April.
From today's perspective, I don't expect positive growth rates before the second half of next year, Weber said in a speech in Hamburg. He noted that the recessionary trend in the coming months would not be as pronounced as it was in the past few months.
Also on Monday, the European Commission said in its autumn forecast that the German economy will contract 5.4% this year, before growing 0.3% in 2010.
The European Central Bank is due to announce its monetary policy decision on Thursday. Most economists expect the ECB to cut the rate to a new low of 1%. Weber didn't say anything on interest rates in his speech.
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