A day after Germany launched a new economic stimulus package, gloomy financial data has confirmed the country’s malaise.
Germany’s largest bank Deutsche Bank says it expects to record net losses of 3.9 billion euros for 2008. The brakes also went on GDP last year. It has fallen to 1.3 percent, compared to 2.5 in 2007. The coalition government has approved a 50 billion euro stimulus package, warning that the country faces its worst post-war recession. Europe’s largest economy had already launched a stimulus package in November, but it was widely criticised as being too modest. The new spending will go towards credit guarantees for struggling companies, investment in infrastucture projects and schools and tax relief.