Recession in the first half of the year 2020 can no longer be avoided, assess the economic advisers in Germany.
Germany’s economy will shrink significantly by 2020. And it is due to coronaudbruddet.
It assesses Germany’s economic council, in a report published Monday.
It writes Reuters.
According to the council, which consists of economic advisors, can the economy run the risk to experience a decline of up to 5.4 percent in 2020.
The economic advisers to mentor government of Germany on economic policy.
the counsellor a starting point for the calculations is that the economic situation returns to normal over the summer. In this case, is counted with a decline of 2.8 percent.
it Goes as hoped, returning the economy to the positive again in 2021. There is expected a feeling of 3.7 percent, if the starting keeps.
But it is by no means certain that it goes like that. If the downward curve is getting bigger, will be the same.
It will say that further measures for public health, which sets production back, can cause a decline of 5.4 percent in 2020.
However, expected a greater feeling afterwards, if the worst thing the 2020 scenario takes place.
the Report has been given the title “The German economy will shrink significantly by 2020”. Of the it appears further that the recession can no longer be avoided for the first half of 2020.
Tore Stramer, chief economist of the Danish Occupation, calling it an “extremely drastic economic forecast”.
He points out in a written comment, to a decline of 5.4 percent of gdp, will be the biggest economic downturn in Germany since the financial crisis in 2009.
– Although today’s forecast by the German economic council is gloomy, so the forecast can still prove to be too optimistic.
– There is in my opinion a significant risk that the decline in the economy is greater than in the years after the financial crisis, writes Tore Stramer.