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Germany's economy is set to grow a modest 0.1 percent in the first quarter of 2020 as the industrial sector is set to remain sluggish and the spread of the coronavirus across the world dampen business sentiment, the DIW think tank said Wednesday. The DIW economic barometer fell by four points to a level of 89 in February. Latest data from Destatis confirmed on Tuesday that the economy stagnated in the final quarter of 2019, amid weaker private consumption and a slump in exports. The spread of the corona virus can disrupt supply chains and temporarily dampen the spending plans of businesses, DIW said. "So far, however, the corona effect has been unclear and cannot be quantified," DIW economic director Claus Michelsen said.

"One thing is certain: The export-dependent German industry would be particularly affected if the virus continued to spread worldwide."