German Economy Could Contract by 2.2 Percent

German Economy Could Contract by 2.2 Percent

According to data published by the Federal Statistics Office of Germany, the German economy contracted by 2.2 percent in the first quarter of 2020. According to the final data of Germany's Federal Statistical Office Destatis, Gross Domestic Product (GDP), which is not based on seasonality and historicity, decreased by 2.2 percent in the first quarter of this year compared to the previous quarter. This contraction is the biggest contraction the German economy has seen since the 2008-2009 crisis. In addition, the downsizing is the second biggest decline after the merging of East and West Germany. In 2009, the German economy contracted 4.7 percent in the first quarter. Compared to the first quarter of 2019, the country's Gross Domestic Product (GDP) shrank by 2.3 percent. Could Contract More Than 2008 Crisis The European Union (EU) Commission estimates the contraction of the EU economy by 7.4 percent and Europe's largest economy Germany by 6.5 percent this year due to the coronavirus (Covid-19) outbreak. The German government, on the other hand, is responsible for the coronavirus outbreak II. It emphasizes that the deepest recession will be seen since World War II. The German government's estimates say that GDP may contract further this year than the 2008-2009 crisis.