China News Agency, Berlin, June 24 (Reporter Peng Dawei) The German business climate index for June released by the German ifo Economic Research Institute rose to 86.2 again on a May basis. The agency pointed out that the German economy has seen "the light at the end of the tunnel." The latest forecast released by the International Monetary Fund (IMF) that day, the German economy will decline 7.8% this year (year-on-year, the same below), but next year is expected to stop falling and rebound, achieving 5.4% growth.
The ifo Economic Research Institute in Munich is an authoritative economic research institution in Germany. Its monthly business prosperity index is compiled based on the survey results of the heads of about 9,000 German companies. It is one of the important weather vanes to observe the economic prosperity of Germany.
Affected by the epidemic situation, the index fell sharply for two consecutive months from March to April this year, from 96 in February to 74.2, and it rebounded slightly to 79.5 in May. The June business climate index released on the 24th further increased on the basis of May A sharp rebound to 86.2. The ifo Economic Research Institute pointed out in a press release that day that German companies believe that the current economic situation has "improved", and the expectations for the future direction of the economy have "remarkably improved."
Ifo Institute economist Klaus Vollabe said that the German economy has crossed the bottom and is expected to stop rising in the third quarter of this year.
The June 2020 "World Economic Outlook" report released by the IMF shows that the global economic growth rate in 2020 is expected to be negative 4.9%, a decrease of 1.9 percentage points from the forecast in April this year. The report said that the negative impact of the new epidemic on economic activity in the first half of 2020 was more severe than expected, and the recovery is expected to be slower than previously predicted. The report predicts a global growth rate of 5.4% in 2021.
The IMF predicts that after achieving 0.6% economic growth in 2019, Germany's economy will experience a 7.8% recession this year, and next year it is expected to stop falling and achieve 5.4% growth. (Finish)