adminThe German economy shrank 2,2 percent in the first quarter, the most in more than a decade, offering an early flavour of the damage from the coronavirus outbreak.
Less than two weeks of official lockdown caused slumps in consumer spending and capital investment. Government spending and construction provided some stabilisation.
A 3,8 percent slump in the euro-area economy led to a decline in employment, the first since 2013. A revision to Germany’s fourth-quarter performance means Europe’s largest economy is already in a recession. With restrictions to contain the pandemic only slowly being lifted, the economy is set to suffer much more in the three months through June.
The euro and German bunds barely reacted to the data. The single currency is trading little changed from the previous day.
The German government has already mobilised some 1,2 trillion euros to support German businesses, and is working on additional tools to kickstart the economy. — fin24.com.
Online Reporter