Germany Revises Upward 2020 GDP Forecast to -5.8%

The worst is over for Germany … and the government response helped it recover faster than expected from the shock of the Coronavirus … statements made by Economy Minister Peter Altmaier while presenting the updated forecasts for his country’s economy in 2020.

Altmire said that the recession in the first half of the year was less severe than the government feared, ruling out the imposition of new measures for closure, as happened in the months of March and April.

Germany revised its forecast for 2020, with the economy declining by 5.8%, compared to previous expectations of a decrease of 6.3%.

For the year 2021, the government revised its growth forecast down to 4.4% from its previous estimate of 5.2%, and Altmire said this means the economy will not reach its pre-pandemic size before early 2022.

It is noteworthy that the German economy contracted by a record 9.7% in Q2 with the collapse of consumer spending, the decline in corporate investment and the decline in exports.