Reuters reports that Bundesbank said in a biannual update of its macroeconomic projections that Germany's economy will contract less this year than previously projected.

Germany's economy is expected to contract by 5.5% this year on a calendar-adjusted basis, beating an earlier expectation for a 7.1% drop.

But next year, it is likely to grow by just 3%, below the central bank's June forecast for 3.2%. The recovery will then accelerate and by 2022, growth could hit 4.5%, beating the previous projection for 3.8%