No chance for the economic revival until Q3, German ministry forecasts
The negative economic impact of the new corona virus will certainly be felt in the third quarter of this year. Only then is the economy expected to stabilize, the German Ministry of Economic Affairs reports.
Because of the virus, Berlin no longer counts on an economic recovery in the first quarter. The outbreak is putting consumer spending under pressure, while business is facing supply chain and demand disruptions. The damaging effect is likely to show up well in the March economic data, the ministry believes.
“The strength and length of the impact is currently difficult to reliably predict, but given the very rapid pace of development, we need to consider significant economic impacts,” the ministry said.