There is mixed news for the German economy as the worldwide pandemic continues to depress economic activity. It emerged that the economy ministry expects the economy to see record high growth for Q3. Then in Q4 growth would continue but slow to a more modest pace. Separately Germany’s major research institutes have forecast GDP will decline 5.4% this year followed by 4.7% growth next year.
Economics director at IfW Kiel, Stefan Kooths said, “a good part of the slump from the spring has already been made up, but the remaining catching-up process represents the more arduous journey back to normal.”
With the pandemic ongoing it is perhaps not a surprise that the recovery appears to be slowing. As a second wave has swept across Europe a new spike in cases has hit Germany prompting the reintroduction of measures aimed at containing the spread.