Germany set for rapid growth over summer months

    84

    FRANKFURT- The Germany economy is set for a rapid and broad-based recovery after an unprecedented peacetime contraction in the spring, but a coronavirus vaccine may be necessary before a complete rebound is possible, the Bundesbank said on Monday.

    Europe’s biggest economy shrank by a tenth in the second quarter but has been making a comeback since much of the epidemic was contained and many restrictions on businesses and daily life were lifted.

    “The clear and broad-based recovery in macroeconomic performance, which began after the low point in April, will continue,” the central bank said in a monthly report.

    “The German economy should grow very strongly in the summer quarter of 2020,” it said.

    Private consumption is expected to make a “solid contribution” to the rebound while industry and capital goods investment will also be key, said the Bundesbank, which earlier predicted a 7.1 percent full-year drop in gross domestic product.