Recovery Loses Momentum – Economy and Politics Still Dominated by the Pandemic: Summary of the Joint Economic Forecast Autumn 2020

As a result of the measures taken to contain the coronavirus pandemic, German economic output fell dramatically in the first half of the year, especially in March and April. A strong countermovement began as early as May, which continued to the current level in almost all sectors. This recovery process is likely to lose momentum: catch-up effects are running out, several sectors are still subject to considerable restrictions, and global investment activity, which is important for the German economy, is likely to remain weak for some time yet. Following a 5.4 percent decline in gross domestic product this year, the institutes therefore expect growth of only 4.7 percent next year and 2.7 percent in 2022.