Central Bank of Germany warns of possible economic recession
Deutsche Bank indicated that due to the effects of the coronavirus, imports would be the most affected
The spread of the coronavirus could lead to a recession in Germany, according to an estimate published by Deutsche Bank.
“The German export-oriented economy will be severely affected by the disruption of international supply chains”, said Stefan Schneider, chief economist for Germany.
In statements in Frankfurt, Schneider therefore considered the German economy will contract in the first two quarters of the year.
Likewise, the Deutsche Bank economist considered that the growth will not exceed the zero line for the whole year, in case the scenario predicted by the German entity is presented.
In this way, he noted, “the official forecast could not be maintained, which provides for economic growth of 0.7%.”
According to its perspective, Deutsche Bank estimates that the number of people suffering from coronavirus could increase to three million worldwide and that some 30,000 will die. The chief economist at Deutsche Bank, David Folkerts-Landau, believes that this is likely by 50%.
“I recommend business-specific credit programs to the central bank”, Folkerts-Landau said.
Source: dpa
