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InstaForex - Official partner of Dragon Racing

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InstaForex - Official partner of Dragon Racing

2020.05.1915:30:00UTC+00DIHK Sees Double-digit Drop In German GDP This Year

The German economy is set to shrink at a double-digit rate this year due to the disruption caused by the coronavirus, or Covid-19, pandemic, the German Chamber of Commerce and Industry, or DIHK, said Tuesday.

Gross domestic product will probably fall by at least ten percent, the group said as it presented the results of a survey of the manufacturing sector. The survey showed that almost three quarters of all industrial companies reported falling demand and that several companies are scaling back their investments. They are also switching their supply chains to regional and European suppliers. "The global corona pandemic hits the German manufacturing right in the heart," DIHK President Eric Schweitzer said. "That is also why we will experience a historic economic downturn this year."

The DIHK survey also showed that manufacturers are expecting a drastic decline in demand for German exports as they see a global economic crisis looming.

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