6/5, 7:32 AM (Source: TeleTrader)
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Ifo: 50% of German firms postpone investments

The Ifo Institute for Economic Research stated on Friday that 50% of German companies have postponed their investments in May, with an additional 28% completely canceling them, as a result of the coronavirus pandemic.

According to the report, 64% of investments were delayed in the industry sector, 45% in the service-providing sector, 44% in trade, and 30% in construction. "These are worrying figures for the long-term development of the economy," Ifo's Klaus Wohlrabe remarked.

The Ifo previously said that the German economy would most likely shrink by 6.6% in 2020 after which it would begin growing by 10.2% in 2021.

Breaking the News / JR