Munich, The German economy is expected to stagnate in the first quarter due to the extension of the lockdown to mid-February, dpa cited the country’s IFO economic research institute as saying today, on Wednesday.
“Every week the lockdown is extended results in direct losses in turnover, production and value added,” IFO economy chief Timo Wollmershaeuser said.
Directly impacted services were likely to see a decline in value added similar to that in spring 2020, Wollmershaeuser said.
Meanwhile, manufacturing and services close to manufacturing would continue growing in the first quarter, Wollmershaeuser estimated.
If the measures are reversed in March the latest, economic output would grow and recover these losses, he said.
Economic output dropped by 5 per cent in 2020 compared to the previous year, according to estimates by the Federal Statistical Office.
In the fourth quarter, gross domestic product (GDP) did not decline despite the lockdown, government statisticians found in an initial estimate.
Source: Saudi Press Agency