The German economy is falling into a recession amid the coronavirus pandemic, according to the latest data from the Munich-based Institute for Economic Research (Ifo) released on Thursday.
The Ifo Business Climate Index plunged to 87.7 points in March, after February's 96 points. The current assessment index fell from 99 to 93.8, while the expectations index dipped from 93.2 to 82 points for this month, the preliminary data revealed.
"Forecasts about how deep the recession will be are currently subject to extremely high uncertainty. It is, therefore, necessary to consider different scenarios. One scenario under consideration at the ifo Institute is highly positive, with economic output of minus 1.5 percent for 2020," Ifo President Clemens Fuest commented on the situation.
"However, this takes only minor declines in industry production into account. In a second scenario, which assumes greater cutbacks in production, economic output shrinks by 6 percent," he added.
