Washington  - The International Monetary Fund on Thursday forecast a sharp downturn in Germany's economy this year and a slow recovery over the following years.

The IMF said it expects Europe's largest economy to contract by 2.5 per cent in 2009. Growth of only 0.1 per cent will follow in 2010.

Unemployment is likely to rise to 8.5 per cent this year and 9.1 per cent in 2010 as a result.

The IMF's Germany expert Ashoka Mody said there would be no rapid recovery, despite a massive stimulus package passed by Germany's government. Global demand for goods had to recover before Germany's own economy could follow, she said. (dpa)