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German economy to shrink some 1.5% in early 2021

Europe Materials 24 February 2021 15:07
German economy to shrink some 1.5% in early 2021

Germany’s economy could shrink by around 1.5% in the beginning of the year, the DIW research institute said on Wednesday, as lockdown measures to restrict coronavirus infections take a toll on Europe’s biggest economy, Trend reports with reference to Reuters.

DIW said a surge in coronavirus cases was constraining economic growth but that the pandemic’s impact was less severe than in last spring when production facilities came to a standstill.

“Above all, industry has come through the winter robustly so far,” said DIW forecaster Claus Michelsen.

Strong exports and solid construction activity helped the German economy to grow by a better-than-expected 0.3% in the final quarter of last year, but stricter lockdown measures at home and abroad are clouding the outlook for Europe’s largest economy.

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