BERLIN, April 8 (Xinhua) -- Germany's economic output would shrink by 4.2 percent in 2020 because of the coronavirus pandemic, leading economic institutes forecast on Wednesday.
Germany's gross domestic product (GDP) was likely to have shrunk by 1.9 percent in the first quarter (Q1) and would fall by 9.8 percent in the second quarter (Q2), according to the forecast.
The joint economic forecast was prepared by the German Institute for Economic Research (DIW Berlin), the ifo Institute (Munich), the Kiel Institute (IfW Kiel), the Halle Institute for Economic Research (IWH), and RWI (Essen).
"Germany's economy is slumping dramatically as a result of the coronavirus pandemic," the institutes noted.
The anticipated "sharp decline" in Q2 would be "more than twice as large" as that recorded in Q1 of 2009.
The current recession was "leaving very clear marks" on the German labor market and the government budget, said Timo Wollmershaeuser, senior economist at the ifo Institute.
The unemployment rate would rise to 5.9 percent "at its peak" in 2020 while the number of short-time workers in Germany would further increase to 2.4 million.
This year, Germany would end up with a "record deficit" of 159 billion euros (172.8 billion U.S. dollars), according to the forecast. In 2019, Germany achieved a positive balance of 45.3 billion euros.
For 2021, the institutes expect a swift recovery of the German economy and forecast a 5.8 percent growth.
"Germany is in a good position to cope with the economic slump and to return in the medium term to the economic level it would have reached if the crisis had not occurred," said Wollmershaeuser. (1 euro = 1.09 U.S. dollars)
