Coronavirus Pandemic to Shrink German Economy by Record 9.8% In Second Quarter

Germany’s economy, Europe’s largest, will probably shrink by 9.8% in the second quarter, its biggest decline since records began in 1970, due to measures imposed to slow the spread of the novel coronavirus, the country’s leading think tanks said on Wednesday, Reuters reported. That would be more than double the drop seen in the first quarter of 2009, during the global financial crisis, the economic institutes said. Germany has been in virtual lockdown for several weeks. Schools, shops, restaurants, sports facilities and other non-essential businesses have closed and many companies have halted production to help slow the spread of the disease. “It is not unlikely that the crisis will drag on longer than expected and lead to production being frozen,” said Timo Wollmershaeuser, an economist at the Ifo institute, one of the think tanks involved in producing the report. Read more