Germany’s outlook of industrial production worse than financial crisis: ifo

Xinhua News Agency | Apr 7, 2020 at 2:33 PM

BERLIN, April 7 (Xinhua) -- The outlook of Germany's industrial production, hit hard by the COVID-19 pandemic, is worse than during the 2008 financial crisis, according to a survey published by ifo Institute on Tuesday.

The ifo index of industrial production expectations plummeted from 2.0 points in February to minus 20.8 points in March, according to the survey.

The decline was the "most drastic slump" since the survey began in 1991, ifo institute said. Even during the global financial crisis of 2008, the index only fell by 13.3 points.

"We are assuming that this development is still somewhat underestimated, as most of the answers were received by mid-March," said Klaus Wohlrabe, head of surveys at ifo Institute.

According to the survey, all industries in Germany were "severely affected" by the pandemic.

Expectations in the automotive industry were "particularly pessimistic" as the index plummeted from 4.2 to minus 36 points.

Only food and beverage producers remained in "positive territory," ifo Institute noted.