German federal statistics agency Destatis calls this decline 'historic,' while experts say the worst of the pain may already be over.
The German economy shrank by a record 10.1% in the 2nd quarter as coronavirus lockdowns took their toll, official data showed on Thursday, July 30, but experts say a recovery is already underway.
The agency also revised its 1st quarter data, saying output declined 2% from January to March, slightly better than the previously announced 2.2%.Thursday's data"is nothing more than a look in the rearview mirror," ING bank economist Carsten Brzeski said, expecting"a strong rebound" in the 3rd quarter.
By contrast, the European Commission expects the economies of France, Italy, and Spain to shrink more than 10% this year.Germany has withstood the coronavirus shock better than many of its neighbors so far. Chancellor Angela Merkel's government, criticized in the past for sitting on fat budget surpluses, has gone to unprecedented lengths to cushion the economic impact of the crisis.
The VAT reduction helped drag German inflation into negative territory in July, Destatis said, with prices falling 0.1% year-on-year, the first negative showing since 2016. As an export powerhouse, Germany is highly vulnerable to virus setbacks in other countries that could lead to renewed shutdowns that once again disrupt supply chains and suppress demand.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
German ministers face grilling over Wirecard collapseFRANKFURT AM MAIN, Germany — Germany&039;s finance and economy ministers will be grilled by lawmakers on Wednesday about the massive fraud scandal that brought down payments provider Wirecard,
Read more »
Shell dives to $18.1 billion Q2 loss on virus-hit oil market
Read more »
Hong Kong economy reels as tough virus restrictions implementedHong Kong's economy shrinks by 9% in the 2nd quarter of 2020 – the 4th contraction in a row.
Read more »
Florida virus deaths surpass 6,000 with single day record
Read more »
India virus cases hit 1.5 million, but slum study casts doubt on official data
Read more »