Germanys GDP fell 2.2percent in the first quarter and fell into recession

category:Finance
 Germanys GDP fell 2.2percent in the first quarter and fell into recession


At the same time, the German Bureau of statistics also adjusted the GDP growth data of the fourth quarter of last year from 0 to 0.1%. This means that after two consecutive quarters of negative growth, the German economy has officially fallen into recession.

Screenshot of the report

German industrial production plummeted to a record - 11.6% in March, data showed, as factories were forced to shut down and workers had to stay at home.

Since this month, Germany has steadily relaxed control. Still, economists believe that Germanys economy could experience a record recession in the second quarter. Deutsche Bank forecasts that the economy will shrink by 14% between April and June, and will still decline by 9% by the end of the year, even if it rebounds slightly later.

Blakeman points out that heavy traffic on German toll roads fell by 6% in March and 11% in April. This shows that the economic downturn accelerated in the second quarter. As a key leading indicator of Germanys economic performance in April, new manufacturing orders fell in March, he added fifteen point six uff05u3002

He added that at the peak of the blockade, Germanys social and economic activity fell to 60% of Januarys level, and now the index has returned to more than 80%.

Novel coronavirus pneumonia has pierced a hole (blowahole) in the public finances of Berlin, the 14 day before the date of the data release. Compared with last year, Germanys tax revenue is expected to decrease by 81.5 billion euros or 10% in 2020. At the same time, fiscal spending will increase and the government plans to take on 150 billion yuan of additional debt. It is worth noting that Germanys economic growth was slowing before the new crown: in the second nine months of 2019, the largest economy in Europe had little growth. Germany, the continents most open economy, is facing a huge export shock. Olaf Scholz, Germanys finance minister, said Thursday that the German government plans to announce a massive fiscal stimulus in June and take targeted measures to revive the economy. Source: Wang Xiaowu NF, editor in charge of observer network

Novel coronavirus pneumonia has pierced a hole (blowahole) in the public finances of Berlin, the 14 day before the date of the data release. Compared with last year, Germanys tax revenue is expected to decrease by 81.5 billion euros or 10% in 2020. At the same time, fiscal spending will increase and the government plans to take on 150 billion yuan of additional debt.

It is worth noting that Germanys economic growth was slowing before the new crown: in the second nine months of 2019, the largest economy in Europe had little growth. Germany, the continents most open economy, is facing a huge export shock.

Olaf Scholz, Germanys finance minister, said Thursday that the German government plans to announce a massive fiscal stimulus in June and take targeted measures to revive the economy.