Germany’s IFO: Economy likely to shrink by 6.6% this year
|Germany’s highly influential institute IFO is out with its view on the economic outlook, noting that the economy likely to shrink by 6.6% this year.
Additional points
“Economy likely to grow 10.2% next year.
Q2 likely to see a contraction of 12.4% due to the coronavirus crisis.
Some sectors including aviation, travel, hospitality and autos are expected to experience a longer recovery period.
In case of slow normalization lasting up to 16 months, the economy could shrink 9.3% this year and growth 9.5% next year.
In case of fast normalization lasting up to 5 months, the economy could shrink 3.9% this year and growth 7.4% next year.”
Market reaction
EUR/USD keeps gains around 1.1020 amid broad US dollar weakness and EU’s recovery fund led optimism.
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