German economy ministry says that there will be strong GDP growth in Q3
Some comments by the German economy ministry
- The economy has been recovering since May
- But recovery process will take a long time
- Further economic upswing depends largely on how the pandemic develops
- Industrial sector is seeing its rapid recovery continuing
- But it will lose momentum due to weak foreign demand
Economic conditions are continuing to point to things progressing on the right track for now, but again questions will be raised about the pace of the recovery once we start to adjust to the "new normal" in late Q3 and Q4 this year.
The other thing to consider is a secondary wave of infections across Europe, with the virus situation starting to escalate once again in the likes of Spain, France and Germany. That will add to fears over the health crisis and dampen consumption activity.
In the bigger picture, it will also mean that international travel/trade will stay more subdued for a much longer time and that will also cap prospects of a quicker recovery.