Categories: Market Overview

German economy posts sharpest contraction since the financial crisis

German GDP (gross domestic product) shrank by 2.2% in the first quarter compared to the final three months of 2019, official preliminary statistics revealed Friday.

The contraction, fueled by the early stages of nationwide lockdowns implemented in March to curtail the coronavirus pandemic, was in line with analyst expectations. But it represents the sharpest decline since the first three months of 2009, in the throes of the global financial crisis.

On the year, Germany’s economy shrank by 2.3% from January to March compared to the same period in 2019, having posted a 0.4% annual rise in the fourth quarter.

The numbers are expected to get worse before they get better. The German Statistical Office has forecast a 10% plunge in GDP for the second quarter, dependent on the success of lifting lockdown measures.

Germany shuttered shops and factories in mid-March and began easing its lockdown restrictions in late April, having experienced a considerably lower death rate than other major European countries. However, significant portions of the economy remain shut.

According to the Robert Koch Institute for Disease Control, the transmission rate for the coronavirus remained below the key threshold of 1 in Germany following initial easing of lockdown measures. As of Friday morning, Germany has confirmed 174,478 cases and 7,884 deaths, according to Johns Hopkins University.

Despite the steep downturn, Europe’s largest economy has fared better than France and Italy, which posted first-quarter contractions of 5.8% and 4.7% respectively.

German economy posts sharpest contraction since the financial crisis, CNBC, May 15

The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

Share
Published by
The FxPro News Team

Recent Posts

EURCHF Wave Analysis 20 December 2024

- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…

3 days ago

USDCHF Wave Analysis 20 December 2024

- USDCHF reversed from resistance zone - Likely to fall to support level 0.8860 USDCHF…

3 days ago

The US dollar ends the year on a strong note

The US dollar is at two-year highs. Factors such as changes in the Fed's monetary…

3 days ago

How deep will crypto dive?

The crypto market is experiencing a decline, with a potential further drop in value. Bitcoin…

3 days ago

EURGBP Wave Analysis 19 December 2024

- EURGBP reversed from support zone - Likely to rise to resistance level 0.8300 EURGBP…

3 days ago

EURJPY Wave Analysis 19 December 2024

- EURJPY broke resistance zone - Likely to rise to resistance level 165.00 EURJPY currency…

3 days ago

This website uses cookies