The Gross Domestic Product of Germany is contracted 2.2% in the first quarter of 2020 compared to the previous three months, when it had decreased by 0.1%, confirming the entry into technical recession of the largest European economy and representing its most severe contraction since the global financial crisis of 2008/2009, as well as the second highest since German unification, as reported by the Federal Statistical Office (Destatis).
Specifically, the German statistical office has detailed that the drop registered in the first three months of 2020 compared to the previous quarter is only exceeded by the one that occurred in the first quarter of 2009, when GDP plummeted 4, 7%.
“Although the spread of the new coronavirus did not have a significant effect on economic performance in January and February, the impact of the pandemic was quite severe in the first quarter of 2020, “said Destatis.
Compared to the first three months of 2019, Germany’s GDP contracted by 1.9%, after the 0.2% year-on-year growth registered between October and December 2019.
In the first three months of 2020, consumption registered a substantial drop of 2.2% compared to the previous quarter, with a 3.2% decrease in household spending, while public spending increased 0.2%.
On the other hand, business investment was paralyzed, with a 0.2% decrease in investment in fixed gross capital formation, in contrast to the 1.6% increase in the first quarter of 2019.
Likewise, exports and imports registered a negative contribution to the economy, with a drop of 3.1% and 1.6%, respectively.