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 monthly ADP labour market report showed that America created 192K new jobs in April, above…
Bears showed strength ahead of the FOMC decision. U.S. indices sagged on Tuesday as investors…
Market Picture Bitcoin's closing price on Tuesday became the lowest since late February, confirming the…
- Ebay under the bearish pressure - Likely to fall to support level 51.00 Ebay…
- GBPAUD reversed from key support level 1.9135 - Likely to rise to resistance level…
Silver has lost 2.6% since the start of the day on Tuesday to $26.4 per…
This website uses cookies