Minus ten percent: a Historic economic slump in Germany

The German economy's performance has fallen as a result of the Coronavirus a pandemic in a record pace. In the months of April to June, the gross domestic prod

Minus ten percent: a Historic economic slump in Germany

The German economy's performance has fallen as a result of the Coronavirus a pandemic in a record pace. In the months of April to June, the gross domestic product contracted by 10.1 percent quarter-on-quarter, as the Federal Statistical office in Wiesbaden announced. According to the statistician, this was the sharpest decrease ever recorded since the beginning of this type of survey in the year 1970. Previously, the interviewed professionals had to say on average a Minus of 9 percent.

the measures for The containment of the pandemic had placed large parts of the economy Lahm: shops, Hotels and Restaurants were forced to close, factories were dense, events were cancelled.

"Now the bill is on the table"

"Now it's official – the-century recession. What have so far managed neither a stock market crash nor oil price shocks, a 160 nm smaller pipsqueak by the name of Corona brought up," said Andreas Scheuerle, Economist at Dekabank: "The state-prescribed and self-selected Isolation, managed to defeat this Virus. Now the bill is on the table.“

As the economic power in Europe's largest economy already in the first quarter due to the beginning of the pandemic had shrunk to 2 percent, it is now also officially in a recession. Of which Economists speak, when gross domestic product is at least decreased two quarters in a row.

For the current third quarter, economists expect a return to economic growth. The experts of the German Institute for economic research (DIW), for example, predict a GDP increase of 3 percent. Nevertheless, it will probably take two years for the historical break-in is made up for by the spring, said the head of DIW Claus Michelsen.

"That was the expected bad result, and – hopefully – a minus record for the eternity", also expressed LBBW economist Uwe Burkert. "For the Rest of the year, we now expect a race to catch up. How strong it is, depends less on economic policy. Rather, it is to pursue the further development of the infection numbers. But even in the best case, i.e. without a new Lockdown, it will take a few quarters until we get this loss of economic activity.“

Alexander Krüger of the Bankhaus LAMPE, the new Numbers assigned in this way: "The fat economic downturn, it is now tick off. The recovery is on the way, you will call the offset values of the parts of the growth loss. In view of the unresolved Corona pandemic can be warned against excessive economic optimism, but only.“

Updated Date: 30 July 2020, 12:19

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