Coronavirus: Germany faces historic recession
Economy Minister Peter Altmaier has announced that gross domestic product is expected to fall 6.3% in 2020, unheard of since calculations began in 1970.
International praise for Germany’s handling of the Covid-19 pandemic may be heart-warming, but the months ahead will likely be extremely painful for the country's economy. The evidence is mounting to suggest that the containment measures taken to stem the virus will have far more destructive effects on activity than anticipated so far. On Wednesday April 29, the Minister of the Economy, Peter Altmaier, announced that the gross domestic product (GDP) should fall by 6.3% this year, unheard of since the calculations began in 1970. "We are going experience the worst recession in the history of the German Federal Republic, "he warned.
The figures presented for the spring forecast are alarmist. Economic activity is currently 89% lower than it was at the end of 2019. Exports, traditionally the backbone of German capitalism, are expected to fall 11.6% this year. And consumption, 7.4%. All hopes of a rapid return to normal, which had been stirred at the start of containment, are dashed. It would take until 2022 for Germany to return to its pre-crisis level. The tremor will therefore be much stronger and much longer than that of 2009, which had lasted only a few months, the government predicts.
Economy Minister Peter Altmaier has announced that gross domestic product is expected to fall 6.3% in 2020, unheard of since calculations began in 1970.
International praise for Germany’s handling of the Covid-19 pandemic may be heart-warming, but the months ahead will likely be extremely painful for the country's economy. The evidence is mounting to suggest that the containment measures taken to stem the virus will have far more destructive effects on activity than anticipated so far. On Wednesday April 29, the Minister of the Economy, Peter Altmaier, announced that the gross domestic product (GDP) should fall by 6.3% this year, unheard of since the calculations began in 1970. "We are going experience the worst recession in the history of the German Federal Republic, "he warned.
The figures presented for the spring forecast are alarmist. Economic activity is currently 89% lower than it was at the end of 2019. Exports, traditionally the backbone of German capitalism, are expected to fall 11.6% this year. And consumption, 7.4%. All hopes of a rapid return to normal, which had been stirred at the start of containment, are dashed. It would take until 2022 for Germany to return to its pre-crisis level. The tremor will therefore be much stronger and much longer than that of 2009, which had lasted only a few months, the government predicts.
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