IFO Sees Europe’s Largest Economy Contracting by 6.7% in 2020

“Germany’s economy will gradually recover after a historic slump due to the coronavirus pandemic and will likely return to last year’s level at the end of 2021,” economic institute IFO said on Wednesday, according to Reuters.

IFO sees GDP contracting by 11.9% in Q2 on a quarterly basis and to get back on the track, growing by 6.9% in Q3 and 3.8% in Q4.

“From now on, things are gradually improving again,” IFO said but added that the situation was uncertain due to the pandemic and the political reaction to. IFO sees Europe’s largest economy contracting by 6.7% in 2020 as a whole and growing by 6.4% in 2021.