Economic advisers to the German government say the COVID-19 pandemic makes a recession in the country inevitable. But how deep will it be? And how quickly will the German economy bounce back?
German Chancellor Angela Merkel says governing parties have agreed on a €130 billion stimulus package to help revive the virus-hit economy. Under the wide-ranging measures, value-added tax will be temporarily slashed.
The fact that only a few highly infectious people are responsible for the spread of the novel coronavirus sounds dramatic. But knowing that may also make it easier to design a targeted strategy to handle the pandemic.
A slump in investments, consumption and exports pushed the German economy into recession in the first quarter, detailed data has confirmed. Economists predict the situation will get even worse in the next quarter.
Germany’s economy contracted 2.2% in the first quarter of 2020. With most of coronavirus lockdown measures taking place in the second quarter, experts expect future figures to be even worse.
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