German government’s advisory council sees 2020 GDP contracting by 5.1%

The German government’s economic advisory council predicts the country’s GDP contracting by 5.1% in 2020 due to the coronavirus pandemic, Sueddeutsche Zeitung reported, citing a leaked advisory council report.

They see the German gross domestic product increasing by 3.7% next year, the media outlet added.

Market reaction

EUR/USD is holding onto minor gains above 1.1800, as the US dollar remains on the back foot as the COVID-19 vaccine euphoria subsides. The spot adds 0.08% on the day to trade at 1.1822, as of writing.

The above report suggests that the ‘lockdown light’ effect on the economy is likely to play out into the year-end.