ifo Economic Forecast Autumn 2020: German Economy Still on the Road to Recover

The coronavirus pandemic plunged the global economy into a deep recession in the first half of 2020. With the gradual easing of shutdown measures, recovery began everywhere by the summer at the latest. Economic output in Germany is expected to be 5.2 percent lower on average for the year than in 2019. Given the assumed pace of recovery, gross domestic product will not reach its pre-crisis level until the fourth quarter of 2021. The average annual growth rate in the coming year will then be 5.1 percent. The recovery will continue in 2022 and GDP will continue to grow at an above-average rate of 1.7 percent.