Michael Probst / AP
Economic output in Germany, a European power plant, fell 10.1% in the second quarter of this year compared to the same period last year. This two-digit decline is the sharpest since the country’s federal statistical office began tracking quarterly economic data half a century ago.
“This is a staggering figure of minus 10.1%,” says Henrik Böhme, an economic analyst at the German state broadcaster DW. “Never before in Germany’s post-war history has the country’s economy slowed as sharply as in the second quarter of 2020.”
A historic downturn that exceeds the 9 percent forecast by economists polled by Reuters. The contraction occurred during a pandemic in which more than 200,000 Germans were infected with the coronavirus – just over 0.2 percent. 84 million people in the country. Johns Hopkins University Pandemic Monitoring Website.
“THE [10.1%] This figure is not surprising, Böhme adds, especially at a time when factories had stopped production, container vessels had stopped loading, there was no access to services, fairs were no longer running and restaurants had to remain closed.
Last year, German output fell by 34.7% in the last quarter. This is sharper than the 32.9% annual decline of the U.S. economy in the second half of 2020. The quarter saw the sharpest decline in American production ever. With more than 4.4 million. Cases of coronavirus infection in the US, at around 1.3%, are more than six times higher than in Germany.
Despite the economic downturn, Germany did not suffer significant job losses. According to the Federal Statistical Office, in June. Unemployment stood at 4.5% and the number of employed people fell by 1.4% compared to the first quarter of this year.
German firms surveyed by the Ifo Institute in Munich this month have shown growing optimism about the economic recovery. This was reflected in the increase in the Ifo business climate index from 86.3 points in June. Up to 90.5 points in July.
However, Germany’s prospects are still closely linked to the effects of the pandemic elsewhere.
“Germany’s particularly export-oriented economy is likely to suffer even more,” said analyst Böhme, “because such important markets as the United States, as well as countries such as Brazil and India, are certainly not in control of the pandemic.”