Thursday, 24 Sep 2020 05:59 PM MYT
The surveys, published today by Germany’s Ifo institute and France’s statistics office, suggested that both countries are set for strong growth in the third quarter, though the outlook is clouded by rising infections and new restrictions to contain the spread of the Covid-19 pandemic. The German economy contracted by 9.7 per cent in the second quarter as household spending, company investments and trade collapsed at the height of the pandemic. The government has since March unleashed an array of rescue and stimulus measures, financed with record new borrowing, to cushion the impact.
For the third quarter, Ifo now expects the German economy to grow by 6.6 per cent on the quarter and then growth to slow to 2.8 per cent in the fourth quarter, Ifo economist Klaus Wohlrabe said.
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