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The President of Germany’s influential IFO institute, Clemens Fuest, said on Thursday, the German economy could shrink by 6% in 2020 due to the coronavirus chaos.

Key quotes

The further course of events depends very much on how the epidemic develops.

We are looking at two scenarios today. A very, very favourable scenario that would result in negative economic growth of 1.5% in 2020.

This was based on limited reductions in production.

We have a second scenario with major production restrictions – this will lead to an economic contraction of 6% in 2020.

This comes after German IFO Business Climate collapsed to 87.7 in preliminary read for March.

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