BERLIN, Jan. 21 (Xinhua) -- German Economy Minister Peter Altmaier said here on Monday that he is optimistic that a hard Brexit could be avoided.

"I'm personally optimistic that we can avoid a hard Brexit but the German federal government is naturally prepared for all possible scenarios," Altmaier told local media rbb info-radio.

Altmaier also told media that Germany observes this development on the one hand with a lot of sympathy for Britain. On the other hand, he is also in the awareness that a lot is at stake -- for the people in Britain, also in Germany and Europe.

However, Altmaier did not foresee a recession in Germany even in the case of a hard Brexit, because Germany acted smartly.

"We must give tax incentives because the corporate taxes have continually risen in recent years, while they have fallen in other European countries," he said.