German authorities have improved economic forecast for 2020

The German authorities have improved their forecast for the outlook for the economy in 2020 amid signs of effectiveness in efforts to support and stimulate Europe's largest economy.

The German central bank expects the country's GDP to contract by 5.8% this year, while back in April it was predicted that the economy would contract by 6.3%. At the same time, the new forecast still does not rule out the onset of one of the most significant economic recessions since the end of World War II.

Meanwhile, the forecast for next year was downgraded. Experts expect that the German economy in 2021 will grow by only 4.4%, while the previous forecast assumed growth of 5.2%. Also, the Ministry of Economy of the country notes that Germany, most likely, will not be able to achieve pre-crisis GDP indicators until early 2022.