BERLIN (Reuters) – Germany's economy is likely to contract 5.5% this year amid the coronavirus pandemic, the Kiel Institute for the World Economy (IfW) said Thursday, which means the fall will be weaker than during the financial crisis of 2009.
In June, the institute, one of the leading consultants to the German government, predicted an annual decline in the country's GDP of 6.8%. In 2009, Europe's largest economy contracted 5.7%.
“The German economy is on track to recover,” IfW said, warning that further economic recovery will be more difficult amid a protracted crisis in some sectors and a surge in new coronavirus cases abroad.
IfW also believes that the German economy will grow 4.8% next year, better than the previous forecast of 6.3%. IfW said it expects the economy to grow 2.4% in 2022.
(Rene Wagner, translated by Olga Devyatiarova. Editor Anna Kozlova)