Germany’s economic outlook looks extremely pessimistic against the backdrop of the pandemic of the coronavirus infection COVID-19.
According to the German Institute for Economic Research, the indicator of business sentiment in the country fell to a record level – up to 74.3 points. It decreased by 11.6 points, which is also a record.
The head of the institute, Clemens Fust, commenting on the situation, called the mood among the top management of companies “catastrophic.”
“The coronavirus crisis is hitting the German economy with full force,” he said.
At the same time, the Nuremberg Institute for the Study of the Labor Market came to the conclusion that in 2020 Germany is waiting for a collapse of the economy by 8.4%. This will lead to mass layoffs, and three million Germans will become unemployed. At the same time, the number of those to whom the rate will be reduced will on average increase to 2.5 million.
“The German economy is plunging into the worst recession in post-war history,” the analyst’s report said.