Daily Management Review

German economy shows record fall in January-March


In the first quarter of 2020, the German economy contracted by 2.2% compared to the fourth quarter of 2019, according to the final data of the Federal Statistical Agency of Germany (Destatis). The fall in the country's GDP was the highest since the first quarter of 2009.

In annual terms, the fall in GDP adjusted for the number of working days was 2.3%.

The results coincided with both pre-announced indicators and analysts' expectations.

Despite the fact that the novel coronavirus did not have a significant impact on the economy in January-February, the economic consequences of the pandemic became quite noticeable in the first quarter, said Destatis.

Consumer expenses decreased by 3.2% in quarterly terms, business investment in equipment - by 6.9%. Government spending and investment in the construction sector had a stabilizing effect on the economy and prevented an even more significant drop in GDP.

The country's foreign trade during the reporting period also declined. According to preliminary data, exports decreased by 3.1% compared with the fourth quarter of last year, imports - by 1.6%.

source: destatis.de