The German economy shrank by a record 9.7% in the second quarter as investments, private consumption, and exports all collapsed due to the COVID-19 pandemic, wiping out several years of growth, the statistics office said on Tuesday in a minor upward-revision to an earlier estimate.
Earlier, the Federal Statistics Office had estimated that the economy contracted by 10.1% in the April-June period.
However, the pace of the rebound will rely partially on the effectiveness of the government’s 130 billion-euro stimulus package and how fast demand for exports picks up.
No doubt, the country’s economy has started bouncing back but economists say it is far from the pre-pandemic level and won’t break even until 2022.
TOPICS:
Germany