German economy starting to see light at end of tunnel - Ifo economist

BERLIN — The German economy is beginning to see light at the end of the tunnel after the passing of the severest phase of the lockdown imposed to slow the spread of the coronavirus epidemic, Ifo institute’s economist Klaus Wohlrabe said on Monday.

But he said the institute, publishing its monthly business climate survey, still expected that the German economy would contract by a double-digit percentage in the second quarter, with order books in the capital goods industry remaining very bad and businesses still expecting exports to fall.

Nonetheless, the business climate among retailers in particular had improved with the easing of the lockdown measures. The mood in both manufacturing and services had also improved, but was still far from optimistic, he said. (Reporting by Thomas Escritt Editing by Michelle Martin)