Best-case scenario: German economy may need at least EIGHT YEARS to recover from Covid-19 recession, report says

2 May, 2020 07:18 

The German economy continues to contract, losing €15 billion ($16.6 billion) a week due to the recession caused by Covid-19, a new report has said. It warned that it will take at least eight years for the country to recover.

Germany is expected to lose between five and 10 percent of its GDP by the end of 2020, the German branch of the US-based consulting firm McKinsey & Company wrote in its recent report.
The economy contracted by 25 percent in April compared to the previous year, which amounts to losing roughly €15 billion ($16.6 billion) per week.
The analysts at McKinsey warned that the German economy will return to its pre-pandemic growth level in 2028, if the country enacts structural reforms towards more automation and AI-based industries. "Otherwise, the return to the original growth model will no longer be feasible in this decade," the report said.

Even if the nationwide stoppage of production like in Italy or Spain can be avoided, it is already becoming apparent that the consequences of the pandemic will exceed those of the 2008/2009 financial crisis in certain dimensions.

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