German economy likely to shrink by 1% in fourth-quarter on coronavirus lockdown - DIW

FILE PHOTO: A steelworker cleans a cylinder at the plant of German steel company Salzgitter AG in Salzgitter, Germany March 2, 2020. REUTERS/Fabian Bimmer/File Photo

BERLIN (Reuters) - The German economy will likely shrink by 1% in the fourth quarter due to a second partial lockdown imposed by the government to halt a sharp rise in coronavirus infections, the DIW economic institute said on Monday.

The measures in Germany will cost the economy 19 billion euros (17.16 billion pounds) in the fourth quarter, DIW said, adding that the number of people unemployed will rise by around 50,000 compared with the first lockdown in the spring.

Reporting by Riham Alkousaa; Editing by Maria Sheahan