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- German consumer climate dropped sharply due to coronavirus - Gfk
German consumer climate dropped sharply due to coronavirus - Gfk
According to the report from GfK Group, coronavirus (COVID-19) is having an enormous impact on consumer sentiment in Germany. Both economic and income expectations, as well as propensity to buy are expected to suffer heavy losses. As a result, GfK has forecast a figure of 2.7 points for April 2020, 5.6 points lower than March's level (revised to 8.3 points).
The significant increase in the number of infections in Germany and the accompanying measures and restrictions have caused the consumer climate to collapse. At just 2.7 points, the index is at its lowest level since May 2009. At that time, during the financial and economic crisis, the consumer climate was at 2.6 points.
"In light of the current development, we are withdrawing our consumer forecast of one percent growth for 2020. Retailers, manufacturers and service providers must prepare for a recession," explains Rolf Bürkl, GfK Consumer Expert. "How severe this recession will be will ultimately depend on when the economy finds its way back to normality. A reliable forecast regarding consumption can only be made once we can predict how long the protective measures to combat corona will remain in place."
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