German economy likely shrinking significantly in Q1 - govt adviser

The German economy is likely shrinking significantly in the current quarter, the head of an expert panel advising the government said on Thursday, as the country is in the midst of a shutdown meant to slow the spread of the pandemic. He said pent up consumption would likely bolster the recovery of the economy.

The German economy is likely shrinking significantly in the current quarter, the head of an expert panel advising the government said on Thursday, as the country is in the midst of a shutdown meant to slow the spread of the pandemic. Europe's largest economy is still able to grow by 3.0% or more this year, Lars Feld, chairman of the German Council of Economic Experts, told Reuters.

"I'm pretty confident that the easing (of restrictions) will come by April at the latest and that this -- along with an accelerated vaccination campaign -- will bring us back to normal," Feld added. He said pent up consumption would likely bolster the recovery of the economy.