CBS Investment

According to the press release of Ministry of Economy of Germany the German Federal Government has predicted a reduction of real GDP by an average of 6%, in its spring forecasts for the current year and expects its growth by 0.5% in 2010.

“The economic recession, which is expected in the current year, for the most part, is a consequence of massive disruption in the global economy and the consequent drastic reduction in our exports,” – quotes a leading paper from the speech of Minister of Economics and Technology of Germany Karl-Theodor zu Gutenberg at the meeting of the Cabinet of Ministers.

According to him, the two existing government programs to improve conditions allow Germany in a national scale “to survive better” compared with other countries. In this regard, zu Gutenberg sees no benefit in taking the third market program, as called for by some politicians and experts.

70% of China’s savings are available in U.S. Treasury bonds and dollars – the crisis currency, which at the first germ of stability has a chance to fall, rather deep, given how fast it is printed. If the Chinese decide that the time has come to sell, inevitable tectonic shifts will happen in the world economy.

The Minister of Finance of the United States arrived in China. Economies of the two countries are so tightly linked to each other that any wrong movement can lead to the collapse. Head of Finance of the U.S. came to persuade Chinese colleagues not to do sudden movements.

“A successful transition to a more balanced world economy will require significant advances in the world. But the most important changes must occur in China and the United States. The welfare of the rest of the world will depend on our success. And the effectiveness of U.S. policy in part will depend on China,” – said Gaytner.

The EU and Russia agreed that Russia’s joining the World Trade Organization should be completed before the end of this year.

This was stated by EU Trade Commissioner Catherine Ashton following a meeting with Russian Minister of Economic Development Elvira Nabiullina on the sidelines of the St. Petersburg Economic Forum.

Nabiullina also commented with enthusiasm on the prospects of joining the WTO.

“Indeed, there is a feeling that we are coming to an agreement with the EU. We hope that we will complete major negotiations by the end of the year. We have built a schedule that must be completed by that date” – brings the words of the Minister agency RIA Novosti. She stipulated that an unresolved issue remains in the negotiations with the EU; that is the issue of export duty on Russian forests, which is not beneficial for such European countries as Finland.

International Economic Forum will take place in St. Petersburg from 4 to 6 June. A year ago, when the economic crisis had already affected the United States and Europe, businesses still continued to call Russia a “quiet haven.” The Government in its turn had built long-term plans for the new role of Russia in the world. And in his speech at the Economic Forum, President Medvedev said: “We have waited long for new bright victories: in economy, technology, and social development.” But the crisis still made it to Russia, and loudly announced itself. Following four months of 2009 the decline in GDP was 10%, while the budget deficit reached 9% of GDP.