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MNI BRIEF: KfW Sees German GDP At -5.3% in 2020

MNI (London)
LONDON (MNI)

Germany's economy is set to contract by 5.3% in 2020 with a 4.0% recovery in GDP in 2021, according to economists at KfW Research. Overall, they expect EZ GDP to decline by 7.4% in 2020 and forecast a rebound of 5.3% in the following year, with the positive growth prospects underpinned by the rollout of a successful vaccine in early 2021, according to the institute's business cycle compass.

The KfW notes that both the German and the EZ economies were able to make up for much of the lost output seen in the beginning of the pandemic by late-summer, with GDP at around 96% of the pre-pandemic level in both economies. However, due to the current resurgence of Covid-19 cases and necessary restrictions, the recovery came to a halt during the winter 2020/2021.

MNI London Bureau | +44 203-865-3814 | irene.prihoda@marketnews.com
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MNI London Bureau | +44 203-865-3814 | irene.prihoda@marketnews.com
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