Business & Economy


Berlin, Jul 30 (efe-epa).- Germany’s economy suffered its sharpest economic downturn since records began in the second quarter of 2020 due to the coronavirus pandemic, the national statistics office said Thursday.

The news comes as the European Union reports an uptick in unemployment in June.

The country’s GDP fell 10.1 percent between April and June compared to the last quarter due to a sharp decline in consumer spending and business activity at the height of the pandemic, making it the largest decrease since records began in the European powerhouse in the 1970s.

Seasonally adjusted figures showed an 11.7 percent drop year-on-year.

“It’s the recession of the century,” Andreas Scheurle, an economist at Dekabank, said.

“What has so far been impossible to achieve with stock market crashes or oil price shocks was achieved by a 160 nanometre tiny creature named coronavirus.”

Thomas Gitzel, chief economist at the VP Bank Group, said: “The good thing is, the numbers are a thing of the past. The economic engine is running again — albeit not smoothly.

“Since the economic downturn in the second quarter is now low, it doesn’t take much to record record growth rates in the third quarter. The pendulum then swings to the other side.”

Economists are hoping Germany’s economy shows signs of a rebound in the third quarter.

The German Institute for Economic Research (DIW) has predicted a three percent rise in GDP between July and September given that many of the restrictions in place to contain the spread of Covid-19 have now been lifted.

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