The corona crisis spares no one: Europe's biggest economic power has plunged into recession
The German economy sank under the influence of the corona crisis into recession, recording the biggest drop in activity since the financial crisis in the first quarter, and the finance ministry warns that data for the second quarter will be even worse.
Seasonally and calendar-adjusted German GDP fell 2.2 percent in the first three months of this year compared to the previous three months when activities, according to revised data from the state statistical office, fell 0.1 percent.
This means that Germany is technically in a recession that some economists define as two consecutive quarters of declining activity.
On an annual basis, the gross domestic product of Europe's largest economy fell 2.3 percent, after a 0.4 percent increase in the last quarter of last year, calculations by Destatis show. Due to the coronavirus pandemic, Germany significantly restricted the movement of citizens, closing schools and traffic, but factories and offices continued to operate and the government provided generous assistance to companies.
That is why the economic downturn is still milder than in neighboring Italy and France, Reuters notes. The German Ministry of Finance warns, however, that the second quarter will be worse than the first.
As of the end of April, indicators indicating trends in the forthcoming period do not inspire hope, although a turnaround could occur in May, according to the ministry's monthly report on the state of the economy.
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