A couple of reports on the forecast by the German government


Spiegel is reporting that the government expects the economy to contract by up to 7% this year while seeing next year's growth at a pace of a little over 5%.

Meanwhile, Reuters is also reporting - citing a government source - that the economy is expected to shrink by a record of more than 6% this year. Adding that the government expects the economy to grow by more than 5% in 2021.

Both reports seem to fit one another but again, I'd take these forecasts with a pinch of salt. Essentially, what they tell us is that sentiment remains bleak for now but there is expectation of brighter days as we look towards the year ahead.

However, whatever scenarios that are associated with these forecasts are still at the whim of coronavirus developments, not just in Germany, but across the globe as well.