The German government says its economy -- the world's third-largest -- is in recession.
A new report says the German economy shrank half a percent in July, August and September, which was the second straight quarter of decline. Falling exports are blamed for the contraction.
A separate report from the Organization for Economic Cooperation and Development predicts that economic activity will shrink by half a percent in countries using the euro and nine-tenths of a percent in the United States next year.
The global financial crisis tops the agenda later this week when leaders from the world's 20 biggest industrialized and emerging economies gather in Washington. European and Asian authorities say they hope the meeting is a step toward producing a new, global solution to the financial crisis.
In a New York speech, U.S. President George Bush said the leaders must work for better regulation of the financial system without choking the free enterprise system that he says is "the surest path" to economic growth.