Bundesbank said in its regular monthly report that Germany would recover slowly after severe recession. It said, “substantial restrictions are likely to remain until a medical solution such as vaccination is available. For this reason, a rapid and strong economic recovery currently seems unlikely.”

Though, it added that “there is no fear that the German economy will get into a self-reinforcing downward spiral”. Fiscal and monetary policies will support the recovery. But inflation is likely to decline sharply in the coming months when lower oil prices are quickly passed onto consumers.

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