Germany is still not out of the woods yet as preliminary data showed that industrial production in Europe’s largest economy fell 1.9% in April following a small rise in March.
Germany’s economy has been hard hit by the drop in worldwide demand since activity is heavily dependent on exports. The pace of decline has slowed and the government does believe demand is stabilizing for industrial goods.
The country’s central bank said on Friday that it expects the economy to contract by 6.2% in 2009, the worst reading since WWII and 0.2 percentage points below the prior forecast.
However, the downward pressure is expected to ease later during year year, and an upturn in Germany won't likely occur until 2010, the Bundesbank said.
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