Even back in March, Germany’s panel of economic advisers agreed that the unfolding coronavirus crisis would deal a severe blow to Europe’s powerhouse and predicted a 2.8% drop in gross domestic product for 2020. The calculation was based on the assumption that lockdowns would last for no more than five weeks and restrictions would be eased swiftly thereafter. But the novel coronavirus wouldn’t play along, and some restrictions are still in place today and keep weighing heavily on the economy. Adapting to the realities on the ground In a revised forecast presented Tuesday, the German economic experts conceded that the country’s output would shrink by 6.5% this year, plunging the nation into its worst recession since the end of World War II. Industrial production has already decreased to its lowest level in two decades and export figures for May were devastating, highlighting Germany’s heavy dependence on fellow European and overseas markets. German shipments abroad would dip by 14.5% this year, the pundits predicted. The five economic advisers said unemployment was likely to rise further in the months ahead to an annual average of 2.72 million in 2020, up from 2.27 million last year. Watch video 01:24 Share German exports fall at… Read full this story
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