Berlin - The German Government is to slash its 2009 growth forecast, official sources told the German Press Agency Tuesday as Europe's biggest economy faces up to its biggest downturn in 60 years. Berlin is to announce Wednesday that it now expects the nation's economy to shrink by a dramatic 6 per cent this year after the global recession tightened its grip on the nation's economy in the opening months of 2009.

The move by Chancellor Angela Merkel's government comes in the wake of a series of downward revisions in the nation's 2009 GDP growth estimate and follows the release of data showing a sharp contraction German production, order books and exports. A slump in the German economy of 6 per cent is also much bleaker than previously expected.

Only last week Finance Minister Peer Steinbrueck said it was not unlikely that the contraction rate in the economy would have a 5 before the point. (dpa)