Germany's leading economists have downgraded their collective gross domestic product forecast for 2020 and 2021 owing to a weaker-than-expected economic rebound and the appearance of a second wave of COVID-19 infections.

Their Joint Economic Forecast predicts Germany's economic growth to contract by a larger 5.4% in 2020 from a previous forecast of 4.7%. The report lowered their previous gross domestic product growth estimate for 2021 to 4.7% from 5.8%. Growth is expected to decelerate to 2.7% in 2022 as the recovery runs out of steam. The downgrade follows a more pessimistic assessment of German recovery.

"Although a substantial part of the drop in output experienced in spring has already been recovered, the remaining catch-up process is the more difficult part of the return to normality," said Stefan Kooths, head of forecasting at the Kiel Institute.

The forecast states Germany's economic recovery is being hindered by slow growth rates in sectors dependent on social contact. These sectors include tourism, catering, events and air transport.

"Activity in this part of the German economy will remain depressed for some time to come and will catch up with the rest of the economy only once measures to control the pandemic have largely been dropped, which we do not expect before next summer," said Kooths.

The forecast is published twice a year on behalf of the Federal Ministry for Economic Affairs and Energy and is compiled by the German Institute for Economic Research, the Ifo Institute in Munich and others.

Analysts weren't surprised at the downgrades because of COVID-19. The second wave is seeing Germany contend with a sharp rise in infections.

As many as 5,130 new cases were reported Wednesday and 4,122 Tuesday, according to data from the Robert Koch Institute, the German federal government research institute responsible for disease control and prevention.

Germany has reintroduced restrictions to stamp out the latest outbreak. Bars and pubs were among the first to be shut or face earlier closing.

German Chancellor Angela Merkel said she and state leaders agreed Wednesday to tougher measures. "We are already in a phase of exponential growth, the daily numbers show that," she said.