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Germany: Pandemic to narrow economy 7.1% in 2020

Christian Fernsby ▼ | June 6, 2020
The German economy is expected to narrow 7.1% in 2020 due to the pandemic, the country's central bank announced on Friday.
Germany factory
GDP   Germany factory
After this year, in 2021 and 2022, the country's gross domestic product (GDP) is forecasted to rebound 3.2% and 3.8%, respectively, according to Bundesbank projections.

Topics: Germany

Measures to stem coronavirus, such as travel restrictions and lockdowns, affected economy deeply in the first quarter of 2020, the bank recalled.

"However, the recovery will remain subdued to begin with, as the negative effects caused by the pandemic and the measures taken to combat it will likely diminish only gradually," it underlined.

The bank noted that the pandemic affected also the labor market and "unemployment will rise considerably for a period of time".