German minister predicts 6.3% drop in GDP

Germany's economy minister says the government is predicting a 6.3 per cent drop in GDP this year because of the coronavirus pandemic, but a recovery in 2021. Peter Altmaier says by the end of second quarter of 2020 the country was likely to see a contraction of about 11 per cent of GDP due to the widespread lockdown measures meant to slow the spread of the coronavirus.

He says the country's export-heavy economy has been significantly affected by the drop in demand for German products worldwide as other countries are also in deep recessions. In 2021, Altmaier says Germany can look forward to economic growth of 5.2 per cent, which will help make up much of the lost ground in 2020.

He says current projections are based upon Germany moving ahead with more economic activity in May and June.