Germany’s Economy Suffers Biggest Contraction on Record, but Green Shoots Emerge
Germany has suffered from a record-breaking economic contraction in the second quarter of 2020 due to lockdown measures taken to prevent the spread of COVID-19. However, Germany is expected to recover faster than other major European economies despite the contraction. Germany’s GDP fell 10.1% when compared with the previous quarter, which represents the largest decline since records began in 1970.
The GDP fall of over ten percent is roughly double the contraction that the country’s economy experienced during the global financial crisis of 2009, according to the federal statistics agency. Germany currently accounts for roughly a fifth of the European Union’s total DGP. Other economies in Europe such as France and Italy are expected to report even higher contractions when data is released on Friday.