Germany’s GDP is set to shrink by 6.3 per cent this year, its worst recession since the Second World War, the government said today.
“We will experience the worst recession in the history of the federal republic,” economy minister Peter Altmaier said.
Exports will plunge 11.6 per cent, Altmaier said.
However, the economy will bounce back quickly: the government predicts growth of 5.2 per cent in 2021, roughly in line with predictions from German economic institute Ifo.
In the US, government figures have revealed that the economy shrank at an annual rate of 4.8 per cent during the first quarter, the worst contraction in more than a decade. Forecasters have said the economy will shrink by as much as 30 per cent during the second quarter.