The Ifo Institute for Economic Research (Ifo) said that the German economy would likely shrink this year and the country business morale tumbled in March.
Ifo economist Klaus Wohlrabe expected the country’s economy to contract by 5-20% in 2020, depending on the length of the shutdown on the back of the coronavirus pandemic.
Wohlrabe forecast a severe recession in the country, which could last for at least two quarters.
An Ifo’s survey also showed that Germany’s business morale nosedived this month to the lowest since 2009, signaling a recession on the back of the coronavirus pandemic is coming.
The business climate index tumbled to 86.1 in March, down from 96.0 in February and posted the sharpest fall since the German reunification. The reading also showed the lowest value since July 2009.
Ifo President Clemens Fuest commented, “The German economy is in shock.”
