Ifo expects 500 billion euros loss in Germany

The coronavirus crisis could cost the economy about 500 billion euros and lead to the loss of more than one million jobs, according to an analysis by the Ifo Economic Research Institute at the University of Munich.

The loss could be far greater than what Germany has been forced to face in recent decades, whether for economic reasons or natural disasters, said Clement Fuest, president of the Ifo.

“Under different scenarios, the rate of economic downturn could range from 7.2 percent to 20.6 percent, representing a loss of 255 billion euros to 729 billion euros,” he said. Ifo estimates that a two-month stoppage in production will cause a loss of 255-495 billion euros to the German economy and a three-month stoppage of 354-729 billion euros. (MTI)