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Germany's economy ministry expects recovery in the second half

Germany's economy ministry expects recovery in the second half

Germany's Ministry of Economy issued forecasts indicating that the largest economy in Europe is set to continue the economic recovery from the Coronavirus crisis during the remainder of 2020, provided that the third quarter of the year shows strong growth, but it may not reach pre-crisis growth levels.

The monthly report of the Ministry of Economy in Germany showed that the economic recession reached its peak during the second quarter of the year before the easing of the closure measures began, which contributed to the return of the industrial sector to work alongside the services sector, before the economic recovery lost some momentum recently due to fears of a second wave of coronavirus infections.

Economists are expecting Europe's largest economy to show a return to growth in the third quarter after a record contraction of 9.7% in the second quarter, as consumer spending, corporate investment and exports collapsed.

The momentum in the recovery that occurred during the months of May and June is expected to push growth to recovery during the third quarter, despite the fact that exports are still far from their previous levels before Corona, but the industrial sector has returned to 90% of its level before the crisis.

Earlier this month, the German government revised its economic forecast for this year with growth to 5.8%, compared to a previously expected decline of 6.3%. 

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