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German economists raise 2020 outlook despite virus surge

Contraction of 5.1 percent instead of -6.5% predicted in June

11 November, 16:32
(ANSA-AFP) - FRANKFURT AM MAIN, 11 NOV - A panel of economists who advise the German government said Wednesday Europe's top economy will shrink less than feared in 2020 despite a resurgence in coronavirus cases, but warned of a "fragile" recovery ahead. A "very strong" rebound in the summer months prompted the so-called "Wise Men" panel to raise its expectations for the German economy to a contraction of 5.1 percent, it said in a report. The decline is less severe than the 6.5 percent fall in gross domestic product (GDP) the panel predicted in June, and better than the government's own outlook of a 5.5 percent decline. However, expectations for 2021 have been lowered to a 3.7 percent expansion, as opposed to the 4.9 percent previously forecast. "Due to the sharp rise in the number of infections, the economic situation remains fragile," said Lars Feld, chairman of the five "Wise Men" panel, which includes two women. (ANSA-AFP).

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