Germany, announced that the German economy could shrink 0.1 percent for the first time since the 2009 financial crisis this year due to the economic impact of the new type of coronavirus (Kovid-19).

Germany, announced that the German economy could shrink 0.1 percent for the first time since the 2009 financial crisis this year due to the economic impact of the new type of coronavirus (Kovid-19).

IfW decreased its Gross Domestic Product growth forecast from 1.1 percent to minus 0.1 percent for this year, it increased its 2021 growth expectation from 1.4 to 2.3. In the statement made by IfW, in the spring period in the growth estimates covering the 2020-2021 and shared about the German economy, It was also stated that an update was made. The statement stated that spreading of the coronavirus will have a significant impact on the German economy, while a V-type recession prediction was made in the German economy due to the outbreak. "The real economic damage caused by the coronavirus cannot be measured right now," the IfW's report said, in a period when the German economy started to recover after the recession period of last year, he said. expression was used. It was shown that the effects of the virus could not be measured, that the economic effects have not yet been reflected in the current leading indicators, and that the economic consequences are largely dependent on the measures taken to prevent the spread of the virus and that the pandemic is further increased.

• The report, which stated that coronavirus will reduce economic activities in the country especially in the first half of the year, and that recovery in the economy will begin later, includes the following evaluations: “In this scenario, the economic picture will look like a prominent V shape this year. It can be predicted that foreign trade will be significantly affected in the coming months. Trade with China, as well as other regions affected by the virus, is likely to decrease significantly. In this context, supply problems for intermediate goods can lead to significant production deficiencies. In addition, the spread of the virus is likely to have a significant impact on the internal economy. In particular, people will likely reduce their entertainment and social spending to be protected from the virus. In light of the uncertain development of the outbreak, we expect companies to postpone their investment projects. " In the report, it was pointed out that significantly more negative scenarios could be possible due to the further expansion of the outbreak in question.