Economists say the German economy likely contracted more than 5% in 2020 due to the pandemic, and the country’s Federal Statistics Office on Thursday is expected to offer comments about how the country fared in the fourth quarter when it presents the full-year data.

A survey of economists predicts that Europe’s largest economy shrank 5.1% last year after growing 0.6% in 2019. Such a decline would be massive but would fall short of Germany’s 5.7% GDP contraction in 2009 following the Global Financial Crisis.

The German economy whipsawed for the first nine months of last year as the pandemic gripped the country. Record growth of 8.5% in the third quarter followed a record plunge of 9.8% in the prior three months and a 2.2% contraction in the first quarter. (LiveSquawk - Continue Reading)

Italy’s former Prime Minister Matteo Renzi on Wednesday announced his intention to pull his centrist party out of the ruling coalition, plunging the country back into political chaos as it battles a resurgence of the coronavirus.

Speaking at a highly-anticipated press conference, Renzi said two ministers from his Italia Viva party would resign. It leaves the government without a majority in parliament and on the brink of collapse.

Support from Renzi’s party had been critical to the survival of the coalition led by the anti-establishment Five Star Movement and the center-left Democratic Party.

Earlier in the day, Prime Minister Giuseppe Conte said he hoped Renzi would not pull his ministers from the Cabinet, warning the country would not be able to understand why the government had collapsed amid the ongoing health crisis.

The Five Star Movement and Democratic Party had also urged Renzi to preserve the unity of the ruling government at a time when the country is trying to get citizens vaccinated and prevent the economy from deteriorating even further. (CNBC - Continue Reading)