Ifo: German economy to shrink 9.8% in Q2
Germany’s economy will shrink by 9.8% in the second quarter due to the coronavirus crisis, according to leading research institutes in the country.
“The recession is leaving very clear marks on the labor market and the government budget,” Timo Wollmershaeuser of the Munich-based Ifo institute said on Wednesday. The largest decline in Germany’s GDP on record will also be accompanied by an unemployment rate of 5.9% this year, he added.
However, Germany is in a “good position” to handle the economic turmoil and “to return in the medium term to the economic level that it would have reached without the crisis,” Wollmershaeuser said, although he noted there are significant downside risks associated with this forecast, all related to the unpredictable nature of the coronavirus pandemic.
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