German Economic Recovery Unlikely To Continue In Q4: Bundesbank
The German economy rebounded in the summer but it is unlikely to continue in the fourth quarter due to the recent resurgence of the pandemic, Bundesbank said in its monthly report on Monday.
Despite the very strong growth, overall economic performance in the third quarter was still 4 percent below the pre-crisis level of the final quarter of 2019.
The experts assessed that the catching-up movement will not continue in the final quarter of 2020 for the time being due to the recent resurgence of the pandemic in Germany and in neighboring European countries, as well as the additional containment measures , the central bank said.
Nonetheless, as the measures restricted economic life far less than in March and April, a similarly severe slump as in spring is not very likely.
Moreover, the bank noted that the international production conditions have so far hardly been affected despite the very high number of new infections throughout Europe.