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German economy to shrink some 1.5% in early 2021: DIW

Published 02/24/2021, 05:08 AM
Updated 02/24/2021, 05:10 AM
© Reuters. Closed shop due to the COVID-19 pandemic in Munich

BERLIN (Reuters) - 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.

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.

© Reuters. Closed shop due to the COVID-19 pandemic in Munich

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.

Latest comments

I thought the USA was giving everyone money...
there is a big potential of growth of the German economy, once the lockdown will be removed in Germany and others countries the money which is available and the strong industry will affect positively the German economy.
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