The European nation Germany has cut off its economic growth forecast for the year 2020, the economy ministry stated on Wednesday while predicting that the coronavirus or COVID-19 will plunge the largest economy in Europe into the biggest recession in the post-war history.
The government cut its estimate for gross domestic product growth in 2020 to -6.3 percent from +1.1 percent predicted in January, the ministry said. It expects the recession to bottom out in the second quarter and economic activity to pick up again after that.
Germany expects the economy to rebound in 2021
For 2021, the government expects the economy to rebound with an expansion rate of +5.2 percent. The forecasts are based on the assumption that authorities can gradually unwind lockdown measures to contain the spread of the coronavirus.
The deadly virus outbreak has created a major stir around the world in recent times infecting over three million people globally and claiming the lives of more than 210,000 people worldwide in more than 170 countries.
(With agency inputs)