Home » Business » German economy hit record in the second quarter: 10 percent contraction

German economy hit record in the second quarter: 10 percent contraction

The corona crisis hit the German economy in the second quarter of this year. This decreased by 10.1 percent compared to a quarter earlier. It concerns the period from April to June, in which the German economy came to a significant halt as a result of the virus outbreak.

This is the largest decrease since the figures are recorded in 1970, says the German statistics agency Destatis. The previous record low was set in the second quarter of 2009, at the time of the financial crisis, at minus 7.9 percent.

Delivery and support package

With Germany out of the lockdown, the economy is picking up gently. Economists say that the level before the pandemic is far from being reached. It is expected that the country will not continue until at least 2022 break-even is running, writes AP news agency.

The German government has rigged up a billion-dollar aid package to absorb the blows; this includes emergency loans, loan guarantees and tax benefits.

More numbers

Tomorrow the figures will come from Italy, France and the eurozone as a whole. They are also expected to be bad.

An unprecedented shrinkage is also being taken into account in the Netherlands. The Central Planning Board predicted in June a decrease of 6 percent this year. Statistics Netherlands will publish the second quarter figures in mid-August. The decline in Germany, the most important trading partner of the Netherlands, will also have repercussions here.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.