BERLIN (dpa-AFX) - Germany's economic recovery would start in the second half of the year underpinned by the measures taken by the government to mitigate the downturn caused by the coronavirus pandemic, the economy ministry said in a report released on Wednesday.
The economy has been in recession since March and it is expected to continue until the middle of the year, the ministry assessed.
The collapsing global demand, the interruption of supply chains, changes in consumer behavior and uncertainty among investors are having a massive impact on Germany, the ministry reported.
Due to the corona pandemic, a unprecedented decline in the industrial economy is expected in months ahead.
According to the spring report prepared by five leading research institutes, gross domestic product will fall 1.9 percent in the first quarter of 2020 and 9.8 percent in the second quarter due to the lockdown.
The ministry observed that the leading labor market indicators slackened massively, suggesting that employment will decline and unemployment will rise as a result of pandemic.
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