Obama stressed the a myriad steps his administration has taken to bolster the economy, including controversial government bailouts of several major auto and financial companies, putting the country on the path for long-term economic health.
"We are on the path of a recovery but it's got to accelerate," he said, warning the country "not to panic, not to overreact."
Obama also said he had discussed Europe's economic recovery with Merkel, and the need for Germany and other European countries to help Greece dig its way out of debilitating debt.
"Greece's debt is significant, and it is taking some difficult steps to improve its situation," he said. "...But I am confident that Germany's leadership, along with other key actors in Europe, will help us arrive at a path for Greece to return to growth, for this debt to become more manageable."
A new Washington Post-ABC News poll released Tuesday erased the month-long boost Obama had received after the killing of Osama bin Laden. The poll found that disapproval with Obama's handling of the economy had reached an all time high.
Top White House economist Austan Goolsbee said late Monday he plans to step down just as disappointing unemployment numbers and other signs of fragile economy have emerged.