MarketDeal24.Com – The Council of Economic Advisers of Germany has said on Monday, the first working day of the week that a technical recession is inevitable for the country’s economy. Their statement comes with a forecast of 5.4% shrinkage of the national output.
Germany, the largest economy of the European Union (EU) is in a nationwide lockdown, enforced to contain the spread of the ongoing coronavirus pandemic which has so far infected 57,000 Germans and claimed the lives of another 455. Bundestag, the nation’s legislature, last week ditched its constitutionally secured provision of debt brake, passing a gigantic stimulus package worth more than 750 billion euros ($831.60 billion) to help the economy recoup the damage to it due to the COVID-19 outbreak.
The council consists of a panel of advisers who advises the German federal government on economic affairs has said that “it’s baseline scenario in which the German economy would return to normalcy over the summer, was for the economic activities to shrink by 2.8% this year before staging and recording a growth of 3.7% in the year 2021.”
Chief of Staff to German Chancellor Angela Merkel, on the other hand, has disclosed to a German newspaper that, the government will not ease restrictions on movement before April 20.