AP quoted Germany economy ministry as saying that Germany's recession likely deepened in the first 3 months of 2009 after the economy shrank by 2.1% in the final quarter of 2008.

In a monthly report, the economy ministry pointed to data showing that exports continued to fall in the January to March 2009 quarter. The 2.1% QoQ decline in gross domestic product seen in the fourth quarter already was the biggest since German reunification in 1990. It added that "The indicators point to the downward movement having, if anything, intensified somewhat in the first quarter of 2009."

Government officials have made clear that they will lower their prediction for full year German GDP from the current forecast of a 2.25% contraction. An updated forecast is due at the end of this month. Preliminary first quarter GDP figures are expected on May 15th 2009.

(Sourced from AP)