The German economy will need two years to recoup growth, the Bundesbank noted.

According to it, in 2020 the largest eurozone economy will shrink by 7.1% in 2020, based on adjusted calendar data, and by 6.8% according to unchanged data, Reuters reported.

The forecasts of the Bundesbank are currently broadly in line with the forecasts of the government and its Council of Economic Experts, which both forecast a fall in the range of 6% to 7%.

Most of the German economy was closed for several months amid the COVID-19 pandemic.

In 2021, the adjusted growth will be 3.2%, and in 2022 - 3.8%, the Bundesbank added.

“Public finances make a significant contribution to stabilisation,” Bundesbank President Jens Weidmann noted. “New stimulus is appropriate in the current situation and I have a positive assessment on the government’s economic stimulus programme.”