The German economy could recover in nine months, according to the ifo forecast

By: Trademagazin editor Date: 2020. 05. 28. 11:10

The gross domestic product of the German economy will fall by 6.6 percent this year, based on the revised version of the Ifo Institute for Economic Research in Munich’s 2020/2021 forecast published on Thursday. The most likely scenario will allow about nine months for business to return to normal in 2021. It forecasts 10.2 percent GDP growth for that time.

“After a 12.4 percent decline in GDP in the second quarter, the status quo could be restored by mid-next year. By then, production of goods and services could reach the level it should be without the coronavirus epidemic,” said Timo Wollmershaeuser, ifo forecast director. It all depends on how long companies will need to normalize their business, he added.