ECB's Weber says German economy is resilient and while it will go "through a dry spell over the coming months" there is "no reason for excessive pessimism over the medium-term outlook or even raising the specter of a deep recession". DIW, IMF and EU Commission yesterday all predicted a technical recession with the economy expected to contract for a second consecutive quarter in Q3 but Weber said his "relative confidence" stems from the fact that "some positive structural adjustments have strengthened Germany's resilience". Weber said German households are in a good shape, with debt ratios declining in recent years and he added that credit conditions in Germany are "considerably less restrictive" than in other Euro-Zone countries and that the risks of a fully blown credit crunch are "contained". Comments are trying to remain positive, but even Weber seems to be admitting now that the economy is contracting.
