IFO Researchers Say German Economy Can Cope with COVID-19 Recession

Berlin – The German economy would be able to cope with the consequences of the coronavirus pandemic, Munich-based Information and Forschung (Ifo) Economic Research Institute has predicted on Wednesday.

According to the institute’s Head, Timo Wollmershaeuser, while the crisis will lead to a serious recession, Germany is well equipped to weather the storm.

Wollmershaeuser said Germany had the pre-conditions in place to regain the economic level prevailing before the crisis in the medium term.

“The country’s sound financial position allowed the state to take far-reaching measures to cushion the negative fallout for business and households,“he said.

Germany’s leading forecasting institutes are predicting that output will fall by 4.2 per cent in 2020, in the sharpest of such decline in more than 10 years since the financial crisis broke out.

Meanwhile, they also predicted a rapid recovery and growth of 5.8 per cent in 2021.(dpa/NAN)

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