Daily Sabah logo

Politics
Diplomacy Legislation War On Terror EU Affairs Elections News Analysis
TÜRKİYE
Istanbul Education Investigations Minorities Expat Corner Diaspora
World
Mid-East Europe Americas Asia Pacific Africa Syrian Crisis Islamophobia
Business
Automotive Economy Energy Finance Tourism Tech Defense Transportation News Analysis
Lifestyle
Health Environment Travel Food Fashion Science Religion History Feature Expat Corner
Arts
Cinema Music Events Portrait Reviews Performing Arts
Sports
Football Basketball Motorsports Tennis
Opinion
Columns Op-Ed Reader's Corner Editorial
PHOTO GALLERY
JOBS ABOUT US RSS PRIVACY CONTACT US
© Turkuvaz Haberleşme ve Yayıncılık 2023

Daily Sabah logo

عربي
  • Politics
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • Elections
    • News Analysis
  • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Expat Corner
    • Diaspora
  • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • Islamophobia
  • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
  • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
  • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Reviews
    • Performing Arts
  • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
  • Gallery
  • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
  • TV
  • Business
  • Automotive
  • Economy
  • Energy
  • Finance
  • Tourism
  • Tech
  • Defense
  • Transportation
  • News Analysis

German economy to shrink 5.4% in 2020: reports

by French Press Agency - AFP

FRANKFURT Oct 14, 2020 - 1:53 pm GMT+3
The skyline with its financial district is photographed during sunset in Frankfurt, Germany, April 22, 2020. (Reuters Photo)
The skyline with its financial district is photographed during sunset in Frankfurt, Germany, April 22, 2020. (Reuters Photo)
by French Press Agency - AFP Oct 14, 2020 1:53 pm
RECOMMENDED
Women look at the window of a clothing shop with words saying "all at half price," in Ankara, Türkiye, Aug. 18, 2022.

World Bank, OECD up 2023 growth forecasts for Turkish economy

Turkish-economy

Germany's economy will shrink more than expected in 2020 and not regain strength until end-2021, leading research institutes said Wednesday, as a coronavirus resurgence weighs on the recovery.

German gross domestic product (GDP) will contract by 5.4%, deeper than a previous prediction made in April of 4.2%, according to five think tanks, including Ifo, DIW and RWI in their annual autumn report.

"Although a good part of the slump from the spring has already been made up, the remaining catch-up process represents the more arduous route back to normality," said Stefan Kooths, head of economic research at IfW Kiel.

Pre-crisis levels of economic output will "probably not be reached until the end of 2021," the report said, with GDP set to grow 4.7% next year, compared with an earlier forecast of 5.8%.

For 2022, the experts predict 2.7% growth.

Sectors dependent on close social contacts, such as food and drink, tourism and events, have been particularly hurt by the pandemic and will "continue to suffer for some time to come and will not participate in the recovery process until infection control measures are largely eliminated," Kooths said.

The downgraded forecasts add to a string of gloomy data coming out of Europe's top economy.

On Tuesday, a closely watched survey by the ZEW institute showed that investor confidence plummeted in October on rising coronavirus numbers and renewed Brexit tensions.

The German economy initially bounced back sharply after it emerged from the spring lockdowns in early May, allowing consumer spending and exports to ramp up.

But the momentum has slowed in recent weeks, and fears are mounting about the impact on Germany's crucial export sector as countries around the world reimpose restrictions to halt a resurgence in COVID-19 cases.

Although Germany has so far coped better with the pandemic than many of its neighbors, it recorded more than 5,000 new cases on Wednesday, the highest level since April.

Limits on overnight stays and early closures of bars and restaurants are already in place in several major German cities, including the capital Berlin and the country's financial center, Frankfurt.

German Economy Minister Peter Altmaier said in September that the economy would contract 5.8% in 2020 on the back of a V-shaped recovery, a prediction that will be severely tested in the coming months.

The greatest risk to the forecast remains the course of the pandemic, the report says.

"The economic downturn is less severe than feared. However, the economic recovery will be tougher than we would like," said Martin Wansleben, managing director of the Association of German Chambers of Commerce.

"A second general lockdown could lead many companies to economic ruin."

RECOMMENDED
Women look at the window of a clothing shop with words saying "all at half price," in Ankara, Türkiye, Aug. 18, 2022.

World Bank, OECD up 2023 growth forecasts for Turkish economy

Turkish-economy
  • shortlink copied
  • RELATED TOPICS
    fight-against-terrorism DEUTSCHE-BANK US-LIBYA-RELATIONS
    KEYWORDS
    german economy covid-19 outbreak economic contraction
    The Daily Sabah Newsletter
    Keep up to date with what’s happening in Turkey, it’s region and the world.
    You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    Through ground-penetrating radar scans conducted underneath Zerzevan Castle in Diyarbakır, massive structures belonging to Rome's 3,000-year-old garrison were detected, Diyarbakır, Türkiye, June 5, 2023. (IHA Photo)

    Ancient Roman garrison unearthed at Zerzevan Castle in Türkiye

    ZERZEVAN-CASTLE
    Russian-flagged Ro-Ro ship Lady R transits Bosporus in Istanbul, Türkiye, April 27, 2023. (Reuters Photo)

    Turkish exporters hope to clinch record of over $267B in annual sales

    foreign-trade

    Turkish lira down about 7% as markets weigh economic policy path

    Turkish-economy

    Erdoğan offers dam crisis mediation in calls to Putin, Zelenskyy

    Kakhovka-dam
    Church of St. Peter near Antakya, Hatay province, southern Turkey.
    Sacred and biblical Christian sites in Turkey
    PHOTOGALLERY
    • POLITICS
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • News Analysis
    • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Diaspora
    • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • İslamophobia
    • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
    • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
    • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Performing Arts
    • Reviews
    • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
    • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
    • Photo gallery
    • Jobs
    • privacy
    • about us
    • contact us
    • RSS
    © Turkuvaz Haberleşme ve Yayıncılık 2021