BERLIN, July 19: Growth in Europe’s biggest economy could beat forecasts for this year and although 2009 will be weaker there should be no talk of recession, German Finance Minister Peer Steinbrueck said on Saturday.

In an interview with Welt am Sonntag Steinbrueck warnedagainst creating nervousness by talking about the prospects of recession in Germany.

It is possible that the conservative forecasts for 2008 will be exceeded slightly. And of course 2009 will be weaker, he said according to the transcript.

But please, not this typically German talk of recession. We have every reason not to make people insecure, he said, also saying: We are not in a situation in which we have to develop crisis scenarios. The finance ministry expects German growth of 1.7 per cent this year, down from 2.5pc last year. It has forecast expansion of 1.2pc for next year.

He also reiterated comments he made last month about ECB interest rate policy. The remarks had caused a stir because he appeared to be warning of the impact on growth of a rate increase shortly before the central bank was expected to, and in the event did, raise rates.—Reuters