Germany’s economy may need 2 years to make up the lost ground, its central bank Bundesbank said on Friday.

In its biannual projections, the bank said the country’s economy will contract by 7.1% this year based on calendar adjusted figures and 6.8% according to unadjusted data. It added that, for 2021, adjusted growth is seen at 3.2%, and at 3.8% in 2022.

Germany imposed a lockdown on March 22 and started a gradual reopening of the economy on April 20. The forecast comes days after the government agreed a €130 billion stimulus scheme.

The figures showed that investments in the engineering sector, construction and public expenditure helped prevent an even bigger downturn.

Last month, the German statistics office Destatis said that the German economy entered a recession, as its GDP contracted 2.2% in the first quarter compared with the same period in 2019.

“Public finances make a significant contribution to stabilization. New stimulus is appropriate in the current situation and I have a positive assessment on the government’s economic stimulus programme”, Bundesbank President Jens Weidmann said.