The German economy is slowly recovering from the impact of Covid-19. Production hit a low point in April but is slowly improving with lockdown restrictions easing. However, full recovery will take time due to reduced exports and companies being cautious about investing. Consumer spending is expected to increase as lockdown measures ease, but some households are facing income losses. Overall, GDP is predicted to decrease by 6.8% this year and increase by 6.3% next year. The unemployment rate is expected to rise, and the budget deficit will increase in the current year before stabilizing next year.