Germany is in recession

Germany is in recession

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%.

Stay updated with the latest financial news! Register now and see what Capex has to offer!

Sources: dw.com, marketwatch.com


The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.