Some economists say Germany is in a deep recession, with its GDP likely to fall between 6.3-7% this year.
A report by the World Economic Institute Kiel (IfW) on June 18 estimates that the German economy will lose more than 390 billion euros in 2020 and 2021 due to COVID-19.
According to IfW, Gross Domestic Product (GDP) of Europe’s leading economy will fall 6.8% in 2020, the largest reduction since the establishment of the Federal Republic.
The Frankfurter daily quoted a number of economic experts as saying that Germany is in a deep recession, with its GDP likely to fall between 6.3-7% this year. In addition, it is uncertain whether the country will face a new wave of outbreaks.
Economists say Europe’s largest economy bottomed out in April 2020. With easing measures starting in May 2020, many companies have also quickly offset some of the production losses.
However, a full recovery from the COVID-19 crisis will take some time. On the other hand, many countries that are German customers are also severely affected by the pandemic, impacting on export activities.
In related developments, the German media quoted figures of the Federal Statistics Office, saying that the COVID-19 epidemic crisis is seriously affecting the German tourism industry.
Revenue from travel agencies as well as other booking service providers in Q1 / 2020 decreased by about 23% compared to the same period last year. This is the largest decline in tourism industry since 2008.
The recent relaxation of regulations on tourism may give impetus to the German smoke-free industry, but this is also highly dependent on travel and spending of the people.