The German government has moved to appoint a new economy minister after Michael Glos, who had held the post, unexpectedly resigned over the weekend.

Karl-Theodor zu Guttenberg, 37, the general secretary of the ruling Christian Social Democrat party (CSU), is set to be appointed to the role by Horst Koehler, the German president, on Monday.

Glos, 64, said he was stepping down as economy minister due to his age and the need for an injection of fresh blood within the CSU party.

His resignation comes at a bad time for Angela Merkel, the German chancellor, as political parties prepare for an election campaign later this year, and the country faces its worse recession in six decades.

Global crisis

Glos had been criticised for keeping too low a profile during the global economic crisis, and he was reportedly unhappy with the support he received from Merkel.

The new economy minister, who has become the youngest person to hold the role in Germany's post-war history, said he was ready to take on the position.

"We are in one of the greatest crises of the past years, a global crisis," Guttenberg said, adding that he aimed to bring new strength and resolve to tackling the downturn.

Horst Seehofer, leader of the CSU, said Guttenberg had a sound economic background.

Germany's economy is predicted to shrink by 2.5 per cent in 2009, according to the International Monetary Fund.

Unemployment is also on the rise, with economists warning 10 per cent of the workforce could be unemployed by September 27, when national elections are due to be held.