Germany’s leading economic institutes on Wednesday published their autumn report, which paints a more pessimistic forecast for the recovery of Europe’s largest economy than experts had predicted in their previous spring report.
The research institutes have revised their GDP forecasts downwards by a percentage point for both 2020 and 2021.
They now expect gross domestic product (GDP) to decline by 5.4% this year from the -4.2% they had forecast in Spring. For 2021, they expect growth of 4.7%, revised down from 5.8%. In 2022, economic output should increase by 2.7 %, they said.
“A good part of the slump from the spring has already been made up, but the remaining catching-up process represents the more arduous journey back to normal,” said Stefan Kooths, economic director of IfW Kiel, in a statement.
READ MORE:German government defends curfews and travel bans amid outcry from businesses
Germany, like most other European countries, is suffering from a second wave of infections, with daily tallies rising to numbers not seen since April.
Chancellor Angela Merkel will meet with the leaders of Germany’s 16 states in Berlin on Wednesday in an attempt to reach some kind of clarity on the confusion over different curfews and domestic travel bans between states.
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The report, which comes out twice a year, is developed jointly by the German Institute for Economic Research, the Ifo Institute in Munich, the Kiel Institute for the World Economy, the Halle