German GDP fell 10% in second quarter

Germany’s gross domestic product (GDP) fell 10.1% in the second quarter of 2020 compared to the first quarter, the largest decline since the beginning of quarterly GDP calculations in 1970.

“It was much larger than during the financial market and economic crisis (-4.7% in first quarter of 2009),” said Germany’s Federal Statistical Office (Destatis).

The Statistical Office also reported that a “massive slump” was recorded for exports and imports of goods and services as well as for household final consumption expenditure and capital formation in machinery and equipment.

The German economy also slumped in a year-on-year comparison.

GDP in the second quarter of 2020 was down 11.7% on a year earlier.

“Again, such large decreases had not been observed even during the financial market and economic crisis of 2008/2009,” said the Federal Statistical Office.

“The largest decrease on the same quarter of the preceding year had been recorded in the second quarter of 2009 (-7.9%).”

Economist Carsten Brzeski at the bank ING Germany told the Associated Press Germany’s recovery would be “a long ride.”

Brzeski said: “This picture shows the deepest but also the shortest recession ever.

“All monthly indicators since May have already pointed to a strong rebound of economic activity in the course of what has been the worst quarterly performance ever.”

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