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InstaForex Loprais Team - Official participant of the Dakar rally

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InstaForex Loprais Team - Official participant of the Dakar rally

2020.11.0211:37:00UTC+00German GDP To Fall In Q4 As Economy Faces Second Wave Of Infection: DIW

The German economy is set to contract in the fourth quarter as the government decided to restrict activity to curb the second wave of infections, the DIW institute said Monday.

Gross domestic product is forecast to shrink 1 percent in the fourth quarter after rebounding 8.2 percent in the third quarter.

Although industry is likely to be less affected than in the first half of the year, consumer oriented service sectors such as the hospitality industry will be most affected, the institute said.

According to institute, an additional 400,000 employees are expected to be put on short-time work.

If Germany succeeds in limiting the spread of Covid-19, the economy can grow again in the coming year. Otherwise, the economic damage could be significantly greater.

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