GERMANY: Economic Research Institutes project a…
GERMANY: Economic Research Institutes project a near 10% Q2 GDP slump
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Leading German economic research institutes (Ifo, DIW, IfW, IWH, RWI) project an
annual decline of GDP by 4.2% for 2020 in their semi-annual report before the
economy recovers in 2021, expanding by 5.8%. In Q1 the German economy is
expected to shrink by 1.9%, while in Q2 a decline by 9.8% is projected due to
the COVID-19 related shutdowns. This be the biggest decline on record (quarterly
series began in 1970) and would be twice as high as Q1’s contraction in 2009.