Eurozone’s Two Biggest Economies Sink Into Historic Recessions

The German and French economies are in the grip of historic recessions which are set to wipe out many years of growth in only a few months, according to forecasts published on Wednesday as leading bodies warned of the impact of the coronavirus crisis on the global economy and trade, the Financial Times reported. Germany’s economy will shrink by almost 10 per cent in the three months to June, according to the country’s top economic research institutes — the sharpest decline since quarterly national accounts began in 1970 and double the size of the biggest drop in the 2008 financial crisis. And the shutdown of vast swaths of economic activity to contain the spread of the pandemic is knocking 1.5 percentage points off French growth for every two weeks that it continues, the Banque de France warned on Wednesday. Read more