The German economy is recovering according to the Federal government of the Corona-crisis and can return in the summer to the growth track. "The economic low point is by steps," said the Federal Ministry of economy, in his on Monday, published report on the situation. Even if the recovery process was still in its infancy, could be expected "from the third quarter," with growth in the gross domestic product (GDP). The Ministry is also the fact that the temporary VAT reduction "incentives" sets.
The Federal government had reduced the VAT to the start of the month for half a year, from 19 to 16 percent and the reduced rate from 7 to 5 percent. Critics have expressed but skeptical that the tax reduction will also reach the consumer. According to a recommendation of the Ministry of economy, the retail sector should be the VAT reduction unbureaucratically across-the-Board discounts to the Fund.
SPD-Chef Norbert Walter-Borjans, has not recently give expressed, however, understand that certain companies, in exceptional cases, the tax-cuts to the customers. He wanted that relief reached the customer, he said in an Interview with the YouTube channel "Young & Naive". However, he find it "totally awesome", that he had written about a Car-Sharing service with the understanding that it is not going to be lowering more. More important to keep the company Running.
the Strongest economic downturn since the financial crisis
For the end of July, pending number for the economic performance in the second quarter before the VAT reduction – as expected, the Federal Ministry of economic Affairs, a big Minus. It speaks of a "significantly negative rate of change of the gross domestic product", to mention but a number. The economy of the Freiburg Professor Lars field is a Minus to be expected between 10 and 11 percent. In the first quarter, the GDP slumped 2.2 percent since the financial crisis of 2008/09, not more.
After the loosening of infection protection measures In the country and abroad but I have now used a "noticeable recovery" of the German economy, stated the Ministry of Department chief Peter Altmaier (CDU). Also the industrial production have the bottom of the valley behind. The rise in new orders suggested a pick-up in production in the coming months.Updated Date: 13 July 2020, 15:20