(PTI): Germany says its economy will contract by 6 percent this year due to the global economic downturn, but will return to growth in 2010.

The latest estimate is a sharp downward revision to the government’s earlier forecast of a 2.25 percent decline.

“The economic decline that we are expecting this year is predominantly the consequence of the massive global slump and the related massive decline in our exports,” said Economy Minister Karl-Theodor zu Guttenberg in a statement.

German exports plunged by more than 23 percent in February to reach their lowest level in six decades.

The government forecast a mild recovery in 2010 with output likely to rise by 0.5 percent. However, some analysts believe Europe’s largest economy will continue to contract in 2010, with unemployment reaching 10 percent.

Germany — the world’s biggest exporter — entered recession in the third quarter of 2008 as the global downturn weakened domestic consumer spending and hit demand for exports.

The government also forecast a fall of 18.8 percent in exports this year.

Earlier in April, the International Monetary Fund (IMF) also predicted the German economy would decline by 5.6 percent in 2009, making it the second highest rate of decline among major economies after Japan.