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Germany is in recession

Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
The pandemic pushed Germany into recession.

As of today, Germany has the most significant economic drop since the 2009 crisis. The country's GDP contracted by 2.2% in the first quarter of 2020. In 2009, the decline was 4.7%. Moreover, the German economy had no growth in the last quarter of 2019.

Due to the pandemic, most if not all economic indicators declined in just a couple of months. The household financial consumption lost 3.2%. According to specialists, the only thing that kept the GDP from decreasing even more was the government's capital expenditure, which rose by 0.2% and the fixed capital formation in construction, which had an increase of 4.1%.

Industrial orders recorded the biggest drop since 1991 between February and March, falling more than 9%. Foreign trade declined by 3.1%, while exports of goods lost 4%. 

The German government anticipates the worst recession since World War II, with an overall drop in GDP by 6.3%.

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Miguel A. Rodriguez
Miguel A. Rodriguez

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.