German economy 'to shrink by 6%'

Germany's economy will shrink by 6% this year and continue to contract in 2010 according to a forecast from the country's leading economic think tanks.The estimates, compiled by eight institutes for the German Economy Ministry, also predicts that the rate of unemployment will hit 10% next year.The gloomy forecast chimes with that of the IMF, which shows the German economy contracting by 5.6% this year.This is faster than any other major economy apart from Japan, says the IMF."The joint forecast of the institutes paints a very dark picture of German economic prospects in the foreseeable future," said Timo Klein at IHS Global Insight.