Bundesbank: German economic recovery continuing at a much slower pace
Bundesbank remarks in their latest monthly report
As it has been all along, these forecasts about the outlook/recovery shouldn't be taken too seriously as there is no certainty surrounding how the virus situation is going to progress in the coming weeks/months from where it is now.
- Expects German economic recovery to continue in Q4
- But at a "considerably slower" pace
- Sharp rise in virus infections, coupled with restrictions, to hit services industry
- Hospitality in particular to get hit badly
- German economy has clawed back a little more than half of the output lost during the slump seen in H1 2020
- But output is still probably some 5% below the level recorded in Q4 last year
It is going to come down to how much the government wants to focus on the health crisis, against the backdrop of having to sacrifice parts of the economy to do so.