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business
Monday Mar 30 2020
By
AFP

Economists believe German economy is set for significant recession

By
AFP
Photo: File

BERLIN: Measures to contain the coronavirus outbreak will slash German 2020 economic output by 2.8 to 5.4% before a rebound next year, a panel of economists who advise the government said on Monday.

"The German economy will shrink significantly in 2020," the so-called "Wise Men" expert panel (SVR) said, with the exact size of the impact "depending on the extent and duration of health policy measures and the subsequent recovery".

Like other economists around the world, the group sketched different scenarios for the virus' impact on Europe's top economy depending on whether it follows a "V" shape, with a sharp drop matched by a swift recovery, or a more prolonged "U" in which the rebound takes longer to materialise.

Also read: Coronavirus toll in Europe soars as doctors overwhelmed, German Chancellor Merkel goes into quarantine

Germany's 83 million people are currently under slightly less strict lockdown conditions than in other European nations like France and Italy, with non-essential excursions outside mostly still allowed.

But companies from airline giant Lufthansa to car behemoth Volkswagen have already slashed their operations in response.