Europe’s largest economy suffered its worst slump on record in the second quarter of this year, as the coronavirus pandemic took a heavy toll on exports and consumer spending.
According to Germany’s federal statistics office, second quarter GDP declined 10.1% from the first quarter, its worst fall since records began in 1970. That’s equivalent to a drop of 11.7% from the same period last year.
With the exception of government spending, all areas of the German economy including exports, imports, investment and household spending, suffered sharp falls.
The latest drop wiped out nearly a decade of growth and was “even worse than expected,” according to economist Florian Hense of Berenberg investment bank.
Economists said the lowest point of Germany’s economic recession was likely reached in April, with activity rebounding from May onward. That upswing could possibly continue in the current quarter through September.