BERLIN | Germany underwent in the second quarter of 2020 with a historical distance of 10.1% of its gross domestic product (GDP), as a result of the restraint measures put in place to limit the spread of the coronavirus, announced on Thursday the federal statistics Office, Destatis.
This is the “worst decline in the indicator since the early quarterly measures of the GDP in Germany in 1970, far more than the previous record of -4,7 % to the first quarter of 2009, at the height of the financial crisis, said Destatis in a press release.
About a year ago, the GDP contracted by 11.7% in data corrected for inflation.
“In the second quarter of 2020, as much as the exports, the imports of goods and services plunged massively,” says the institute.
The German economy suffered a shock multiforme: containment decreed from mid-march to may, in the face of a health crisis that has paralysed the production of many sectors, slowed sharply in the exchanges and restrained consumption.
In April, at the height of the restrictions, manufacturing, a pillar of the first economy of the euro zone, has seen a historic fall of 17.9 %. Orders in the industry fell from 25.8 %, and exports are collapsed to 31.1 %.
With a health status better than that of its neighbours, Germany has risen from may, most of his restrictive measures, allowing for a recovery in economic activity.
“We have to wait now to catch up during the rest of the year, but the pace of which will be dependent on the status of health, writes Jens Oliver Niklash, an economist for the bank LBBW.
The German government expects a return to growth at the latest from October, and a rebound of 5.2 % by 2021, as well as a return to production levels before the crisis in 2022.
Signs of stabilization, the unemployment rate in Germany remained at the same level in July as in June, at 6.4 %, after three consecutive months of increases due to the economic crisis.