Germany finance ministry has warned that its recession is getting worse and conglomerate ThyssenKrupp would shed more than 3,000 steel and manufacturing jobs.

The ministry's monthly report said that "Current economic indicators are on the whole pointing to a further worsening of the situation compared to the fourth quarter. Indicators signal that the contraction of gross domestic product is accelerating in the first quarter. The recession is therefore getting worse in Germany."

It may be noted that Germany economy shrank by 2.1% in the last 3 months of 2008. For 2009, the government sees a further contraction of 2.25% but this is considered too optimistic by most analysts.

Meanwhile, sinking global trade has slammed world leading German exporters, a situation starkly illustrated by a Financial Times report that ThyssenKrupp would get rid of 3,000 jobs. The group declined to confirm the number but a spokesman told AFP that "It is true that we must cut costs, and we have said we cannot rule out personnel adjustments."

Mr Peer Steinbrueck finance minister of Germany said that there was a possibility that we will not be able to make the 2.25% contraction currently expected.

(Sourced from www.afp.com)