Germany’s economy is losing steam but will do slightly better than government forecasts as fears grow over rising coronavirus infections, according to the country’ s five leading research institutes.
Gross domestic product will contract by 5.4% in 2020 and grow 4.7% next year, the experts predicted in their latest bi-annual outlook published Wednesday. In their spring report, they expected a contraction of 4.2% this year and growth of 5.8% in 2021.
”A good part of the slump from the spring has already been made up, but the remaining catching-up process represents the more arduous journey back to normal,” said Stefan Kooths, economic director of IfW Kiel.
The administration of Chancellor Angela Merkel in early September revised its economic forecast for this year from -6.3% to -5.8% and for next year from 5.2% growth to 4.4%.