Germany lowers its economic growth forecast due to the Coronavirus crisis

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Two sources told Reuters today, Monday, that the German government expects that the economic losses resulting from the Corona virus pandemic this year will be less severe than it initially feared, but that it will lower its growth forecast for next year.

On Tuesday, Economy Minister Peter Altmire will present revised forecasts for Europe’s largest economy, which in the first half of the year suffered its worst recession in peacetime.

The government said in April during the pandemic peak that it expected the economy to recover with a 5.2% growth rate in 2021, following a record contraction of 6.3% this year.

“The recovery next year will be somewhat less robust than what was initially expected,” said a source familiar with the government’s latest forecasts, speaking on condition of anonymity.

A second source said this means that the German economy is unlikely to reach its pre-crisis level before 2022.

A spokesman for the economy ministry declined to comment.

A source in the ruling coalition told Reuters on Friday that the government is likely to revise its forecast for economic growth for 2020 to a drop of less than 6 percent. However, it would be the largest economic downturn since the end of World War II.





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