Germany Ifo Business Climate collapsed from 96.0 to 86.1 in March. That’s the steepest decline ever recorded since German reunification. It’s also the lowest value since July 2009. Current Situation index dropped from 99.0 to 93.0. Expectations Index dropped from 93.1 to 79.7.
By sector, manufacturing index dropped from -1.6 to -18.2. It’s the lowest since August 2009. Service index dropped from 17.4 to -7.6, biggest decline on record since 2005. Trade index dropped form 1.0 to -21.4. Construction index dropped from 12.9 to 5.0.
Ifo economist Klaus Wohlrabe said the economy could contract by between -5% and -20% this year depending on the length of the shutdown caused by the pandemic. He expected there to be a severe recession that would last for at least two quarters.