Ifo economist: German GDP should contract by 0.7% q/q in Q1

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Comments by Ifo economist, Klaus Wohlrabe

  • German industry is very strong, order books have filled up
  • Export expectations have exploded due to strong demand from US, China
  • Services sector has also improved significantly

Despite the manufacturing sector carrying the rest of the economy on its back, it still likely isn’t enough to counteract the downside from lockdown measures in Q1.

And with the virus situation worsening and carrying over to Q2, there is worry that the economic drag will continue for a few more months as the vaccine rollout is still at its infancy stage at this point in time.
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