German IFO’s Economist: GDP could drop by 5-20% this year

Dhwani Mehta FXStreet

Following the release of the final German IFO Business Survey, the institute’s Economist said that there could be a GDP drop of between 5-20% this year.

Further comments

The degree depends on length of shutdown.

We presume that there will be a bad recession for at least two quarters.

The proportion of pessimistic companies has risen strongly in recent days.

German manufacturing index hit its lowest level since August 2009.

Sentiment has never fallen as strongly as this in the services sector.

Food shops and chemists are among the few areas where business climate has risen.

EUR/USD flirting with daily highs post-IFO, around 1.0840

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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