Economists significantly worsen German GDP drop forecast this year

The Council of Economic Experts under the German government has adjusted the forecast for German GDP for the current year downward. Now economists expect the country's economy to collapse by 6.5% in 2020.

Council Chairman Lars Feld said the coronavirus pandemic will lead to the worst collapse of the German economy in the entire existence of the Federal Republic. At the same time, Feld suggests that the German economic recovery will presumably begin in the summer, and a return to growth – in early 2021. The return of economic indicators to the levels before the pandemic begins is expected only in 2022.

Recall that earlier economists considered a five-week lockdown and a 2.8% reduction in GDP the most likely scenario. In the worst case scenario, experts predicted a collapse of the economy in 2020 by 5.4%.