The German economy contracted by 2.2 percent in the first quarter of 2020, the worst performance in more than 10 years.
This is reported by Bloomberg.
According to the media, it took less than two weeks of quarantine to reduce consumer spending and capital investment.
“Revising Germany’s figures for the fourth quarter means that Europe’s largest economy is already in recession. With the restrictions aimed at containing the pandemic, which are gradually being lifted, the economy will suffer much more in the three months to June”, – the agency said.
Finance Minister Olaf Scholz has already promised an economic stimulus programme that will focus on investing in a “modern and climate-friendly future. At the same time, the government has already had to mobilize about 1.2 trillion euros against the backdrop of the coronet crisis.
As News Front reported earlier, economic problems were observed in Germany even before the coronavirus pandemic. In 2019 Germany showed the slowest economic growth in the last 6 years. The export-dependent system collapsed in the conditions of the trade war unleashed by Washington. At the same time, the automotive industry was desperately struggling with the consequences of the environmental scandal by hurriedly introducing electric motors.