June 30, 2020 / 8:40 AM / 13 days ago

Quick recovery of German economy "off the table" - DIHK

FILE PHOTO: Cars intended for export wait at the port for loading, as the spread of the coronavirus disease (COVID-19) continues in Bremerhaven, Germany, April 24, 2020. REUTERS/Fabian Bimmer/File Photo

BERLIN (Reuters) - A V-shaped recovery of the German economy from the impact of the coronavirus pandemic is unlikely, with two thirds of companies expecting a return to normalcy in 2021 at the earliest, business association DIHK said on Tuesday.

“The V is off the table,” DIHK said, adding that its survey of 8,500 companies confirms its forecast for a 10% slump in Germany’s economy this year.

The association added that four out of five companies expect their sales to decline this year. “These numbers show the great uncertainty among our companies.”

Germany is planning to implement stimulus measures worth more than 130 billion euros ($146 billion) overall to cushion the blow of the pandemic, including a temporary cut in value-added tax and funds to rescue small firms from bankruptcy.

DIHK said bridging aid and stimulus measures were important but cautioned: “Nothing is more important for companies than the chance to be able to generate sales again.”

($1 = 0.8921 euros)

Reporting by Thomas Seythal; Editing by Maria Sheahan

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