Germany's GDP and exports fall dramatically
Germany's GDP and exports fall dramatically

The coronavirus pandemic has dealt a severe blow to the German economy. Many analysts note that in the first quarter of 2020, Germany plunged into a recession triggered by a drop in fixed assets investment and a sharp decline in household consumption and exports.

According to the Federal Statistical Office of Germany, during the reporting period, investment in fixed assets nosedived by 6.9%, household consumption by 3.2%, and exports by 3.1%. As a result, in the first quarter of 2020, Germany's GDP tumbled by 2.2%, posting its largest collapse since the 2008-2009 financial crisis.

At the same time, investment in Germany's construction sector, which accounts for about 10% of the total GDP, increased by 4.1%.

In the first quarter of this year, government spending rose by 0.2%. Experts believe the growth in this indicator will help the German economy to recover.

In the second quarter of 2020, economists project a larger drop in GDP caused by the easing of quarantine restrictions. They also point out that any interventions in the economy, especially those related to COVID-19, will entail a number of unpredictable consequences.

Published: 2020-05-27 15:38:04 UTC
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