German Economy Shrank By Record 9.7% Quarter-on-quarter In Second Quarter

11Views

August 25, 2020

BERLIN: The German economy contracted by a record 9.7% in the second quarter as consumer spending, company investments and exports all collapsed at the height of the COVID-19 pandemic, the statistics office said on Tuesday.

The economic slump was much stronger than during the financial crisis more than a decade ago, and it represented the sharpest decline since Germany began to record quarterly GDP calculations in 1970, the office said.

Still, the reading marked a minor upward revision from an earlier GDP estimate for the April-June period of -10.1% quarter-on-quarter that the office had published last month.

Consumer spending shrank by 10.9% on the quarter, capital investments by 19.6% and exports by 20.3%, the seasonally adjusted GDP data showed.

Construction activity, normally a consistent growth driver for the German economy, fell by 4.2% on the quarter.

The only light came from state consumption which rose by 1.5% on the quarter due to the government’s coronavirus rescue programmes, the office said.

The German parliament has suspended the debt brake this year to allow the government to finance its crisis response and fiscal stimulus push with record new debt of 217.8 billion euros.

The fiscal U-turn after years of balanced budgets means that the German state recorded a budget deficit of 51.6 billion euros from January to June, the statistics office said in a separate statement.

Also Watch

Monsoon Mayhem: Heavy Rains In Gujarat Create Flood-Like Situation, Residents Force To Evacuate Home

That represents a deficit of 3.2% of economic output as measured by the EU’s Maastricht criteria.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Array
(
[videos] => Array
(
[0] => Array
(
[id] => 5f44b45d7c39367400f9c65b
[youtube_id] => 4swapnx_8lQ
German Economy Shrank By Record 9.7% Quarter-on-quarter In Second Quarter => Monsoon Mayhem: Heavy Rains In Gujarat Create Flood-Like Situation, Residents Force To Evacuate Home
)

[1] => Array
(
[id] => 5f44af717c39367400f9c552
[youtube_id] => d8UkoquxdOY
German Economy Shrank By Record 9.7% Quarter-on-quarter In Second Quarter => NIA Team Reaches Jammu Court To File Chargesheet In The Pulwama Terror Attack Case
)

)

[query] => https://pubstack.nw18.com/pubsync/v1/api/videos/recommended?source=n18english&channels=5d95e6c378c2f2492e2148a2,5d95e6c278c2f2492e214884,5d96f74de3f5f312274ca307&categories=5d95e6d7340a9e4981b2e10a&publish_min=2020-08-22T12:22:23.000Z&publish_max=2020-08-25T12:22:23.000Z&sort_by=date-relevance&order_by=0&limit=2
)

German Economy Shrank By Record 9.7% Quarter-on-quarter In Second Quarter

Also Watch

Speak Your Mind

LEAVE A REPLY Cancel reply

Get in Touch

Recommend for You

Oh hi there It’s nice to meet you.

Subscribe and receive our weekly newsletter packed with awesome articles that really matters to you!

You might also like

EDITOR PICKS

POPULAR POSTS

POPULAR CATEGORY

About Us

Follow Us

Support Us & Be a Patreon

Add QNewsHub to your Homescreen!

Oh hi there
It’s nice to meet you.