After a decade of growth, the German economy is likely to shrink by 6.3 percent in 2020, according to Economy Ministry projections released on Wednesday. The outlook is a little brighter than figures announced by the International Monetary Fund (IMF) earlier this month, as the lender expects a seven percent contraction in Germany next year.

After passing the lowest point of the recession in the second quarter, economic activity is expected to pick up in the second half of the year and the gross domestic product (GDP) may jump by 5.2 percent in 2021. The crisis has already cost the German government $1.1 trillion as it introduced “unprecedented” measures to keep the economy afloat as coronavirus-related restrictions led to massive closures of businesses.

“We are faced with great challenges, both economic and political,” Peter Altmaier, Germany’s economy minister, said. Despite the devastating impact of the virus on the economy, the minister stressed the country shouldn’t rush to lift restrictions on public life due to a possible resurgence of the disease. The warning comes amid fears over rising infection rate across the country, meaning that the spread of the deadly virus is accelerating again.

Earlier in the day, the European Commission released the results of a survey, showing that the key indicator for economic sentiment in both the euro area and the European Union dramatically plummeted in April. The decline became the worst on record (since 1985), surpassing the negative March results.

For more stories on economy & finance visit RT’s business section

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

These 26 words ‘created the internet.’ The US government is coming for them

Washington, DC (CNN Business)For decades, many of the biggest names in tech have leaned on a little-known law to avoid being held responsible for some of the most controversial content on their platforms. The companies have invoked this federal law,…

Insurers pledge $55M to lower generic drug prices

A coalition of health insurers pledged $55 million to help manufacture generic prescription drugs at lower prices, as the skyrocketing cost of medication has triggered a national reckoning. The Blue Cross Blue Shield Association and 18 independently operated Blue Cross…

Bitcoin surges past $20,000, erasing 3 years of deep losses

CHARLOTTE, N.C. — The price of bitcoin rose above $20,000 for the first time Wednesday, as the speculative digital currency topped its previous peak reached shortly after it became tradable on Wall Street three years ago this month. Like other…

Here’s why this successful VC says now is a great time to start a company

New York (CNN Business)Venture capitalist Arlan Hamilton knows a thing or two about defying the odds. Once broke, homeless and sleeping on the floor of San Francisco’s airport, Hamilton became the first, black queer woman to start her own venture…