Germany: Biggest GDP Drop in 2020 Since the WWII

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German economy will shrink by more than 6% this year, a government source told Reuters on Friday. The magnitude of the downturn will be the largest in post-war history.

The economy will recover from the coronavirus pandemic in 2021, when growth will exceed 5%, the source added.
Der Spiegel magazine was the first to report such numbers, citing a forecast by the Ministry of Economy, which will be released next week.

A spokeswoman for the German Ministry of Economics said there are no final growth forecasts yet.

IFO’s business climate, current assessment and expectations indices printed lower than expected on Friday suggesting economic recovery may take longer than previously expected. The government is expected to throw more money into the economy recouping wiped-off demand.

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