Almost two months of the pandemic restrictions has affected Europe’s largest economy Germany. The country’s GDP in the II quarter of this year decreased by 10.1. The Ministry of economy of Germany predicts that the drop for the year will be 6.3%.
Market analyst Robert Halver (Baader Bank) said: “the GDP figures for the second quarter were worse than expected, about a beauty contest among the economy today, however. We have no choice, you need to leave the second quarter behind us and move on.”
This decline is almost two times higher than the previous record, when during the global financial crisis in the first quarter of 2009, German GDP fell 4.7%.
Market analyst Robert halver of the Baader Bank: “the crisis caused by the pandemic has dealt a severe blow. We are faced with a structural deficit, is the lack of innovation in the digitalization of the economy, but particularly affected by a sharp drop in exports, the reluctance of consumers to spend money and the unwillingness of companies to invest — all this is because of the pandemic. Economic activity was suspended due to restrictions”.
The most serious restrictive measures slapped on individual entrepreneurs. Among the most affected sectors — tourism, passenger transportation, restaurant business. Experts say that economic recovery will take at least two years.