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(CEP News) Frankfurt - Germany's Bundesverband deutscher Banken (BdB) bank association has revised down its forecasts for both German and euro zone economies and now expects GDP to stagnate in 2009. Its previous forecast had pointed to both economies growing 0.5% over the year.
"The global economic downturn worsened in the autumn," the association said in its economic report published on Thursday. "In the industrialized countries, the situation has worsened so clearly that a recession can hardly be avoided. Since deteriorating in September, the financial crisis is influencing the global economy more and more." BdB also said that despite the recent cuts to the European Central Bank's main refinancing rate in October and November, the interbank lending rates are still quite high. "Regardless of this, the problems on the money market have not been resolved," the BDB said. The BdB added that the global economy will slow to a growth rate of 3% in 2009, down from the 0.4% average for this year. Courtesy of
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