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Quick recovery of German economy 'off the table' - DIHK

Updated: 2020-06-30 16:49

A banner reading "Please keep distance Pay contactless" is pictured in front of a shop during the spread of the coronavirus disease (COVID-19) in downtown Wildeshausen, Germany, June 24, 2020. [Photo/Agencies]

BERLIN - A V-shaped recovery of the German economy from the impact of the coronavirus pandemic is unlikely, with two thirds of companies expecting a return to normalcy in 2021 at the earliest, business association DIHK said on Tuesday.

"The V is off the table," DIHK said, adding that its survey of 8,500 companies confirms its forecast for a 10 percent slump in Germany's economy this year.

The association added that four out of five companies expect their sales to decline this year. "These numbers show the great uncertainty among our companies."

Germany is planning to implement stimulus measures worth more than 130 billion euros ($146 billion) overall to cushion the blow of the pandemic, including a temporary cut in value-added tax and funds to rescue small firms from bankruptcy.

DIHK said bridging aid and stimulus measures were important but cautioned: "Nothing is more important for companies than the chance to be able to generate sales again."


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