The Recovery Of The German Economy Has Been Gradually Slowing

The Recovery Of The German Economy Has Been Gradually Slowing

The recovery of the German economy continued in October, but the pace of recovery has been gradually slowing since August. The German Ministry of the Economy said that the new measures taken in response to the second wave of the spread of the new coronavirus would have a significant impact on the results for November. However, according to the ministry, this does not mean that the economic recovery should end in the 4th quarter. However, it is a condition that the restrictions adopted are limited. German government advisers, also known as the Council of the Wise, released on Wednesday (November 11) the latest estimate that the German economy should decline at a slower pace this year than five months ago. According to them, this year the German economy should record a decline of 5.1%, while in the June forecast they reported a decline of 6.5%. The significant recovery of the economy in the summer months contributed to this. However, the second wave of the pandemic has worsened the outlook for 2021, in which economists now expect weaker growth than estimated five months ago. In June, they expected growth of 4.9% in 2021, the new forecast indicates growth of only 3.7%.