US, WASHINGTON (ORDO NEWS) — A recession in Europe’s largest economy – Germany – was inevitable in the first half of the year due to an outbreak of coronavirus, said the Council of Economic Advisers of Germany, reports Reuters.
In addition, consultants predicted that German production could decline to 5.4% in 2020.
The commission, which advises the government on economic policy issues, said its baseline scenario, in which the economic situation normalizes during the summer, was to reduce the economy by 2.8% this year, and then potential growth of 3.7% next year. year.
But a more noticeable V-shaped decline curve with widespread shutdowns or longer restrictive measures could lead to a 5.4% reduction in the economy this year, and then to 4.9% growth in 2021.
“The outbreak of coronavirus stopped the ongoing recovery (of the German economy),” the advisers said in a report that was transmitted to the government on March 23, but published only on March 30.
“The German economy will shrink significantly in 2020,” the document says.
It is noted that economists usually define recession as two consecutive quarters of negative growth.
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