The head of Germany's BGA trade association said on Monday he expected a continued deterioration of economic conditions in the euro zone's heavily indebted southern periphery for the time being.

"I fear a further worsening of the recession in southern Europe in the short term," BGA president Anton Boerner told a news conference.

Boerner also said he saw no short-term danger of a global race to depreciate currencies due to Japan's new policy of aggressive monetary expansion that has driven down the value of the yen.

(Reporting by Gernot Heller, writing by Gareth Jones)