The massive closure of enterprises during the quarantine period led to an unprecedented reduction in German production.
This was reported by the Bloomberg agency.
In just a month, German production fell by 17.9%.
“There was an unprecedented closure of factories and shops, investment goods producers were hit especially hard,” the media said.
Last month, about 50% of companies delayed investment projects, 28% completely abandoned them. Even though activity has begun to increase since then, Europe’s largest economy is projected to decline by about 10% in the second quarter of 2020.
The German federal bank, in turn, argues that the worst period of the crisis is probably behind. The regulator expects a seven percent reduction in the economy this year. However, his forecast is based on the success of the government plan to stimulate the economy, for which 130 billion euros have been allocated.