German Finance Minister Olaf Scholz said on Wednesday that Europe’s largest economy would be able to counter an economic crisis if there were one but added that he did not expect a downturn as bad as in 2008/2009, ONA reports citing Reuters.
“We are well prepared because we have decent financial resources so if there is an economic crisis, we can take countermeasures but at the moment we’re only seeing slower growth,” Scholz told public broadcaster ARD.
He said if a crisis as serious as in 2008/2009 were to appear on the horizon, Germany would “be able to do everything that is necessary” but added that he did not foresee such a scenario, with forecasts pointing to the economy improving - albeit more slowly than had been previously hoped.
Many economists expect the economy to fall into recession in the third quarter after contracting in the second. Germany’s leading economic institutes are later on Wednesday expected to lower their growth forecasts for this year and next, sources told Reuters.