German Government Slashes GDP Growth Forecast As Extended Lockdown Bites

• The German government on Wednesday slashed its growth forecast for Europe's largest economy to 3% this year, a sharp revision from last autumn's estimate of 4.4%, caused by a second coronavirus lockdown.
• Chancellor Angela Merkel and state leaders agreed last week to extend the lockdown until mid-February as Germany, once a role model for fighting the pandemic, struggles with a second wave and record daily numbers of COVID-19 deaths.
• The economy shrank by a smaller-than-expected 5% last year. That still marked the second-biggest economic plunge in post-war history, surpassed only by the record -5.7% in 2009, during the financial crisis.

(Source: Reuters)