Germany Enters Recession While More than 100 Banks Apply Negative Interest Rates

Germany Enters Recession While More than 100 Banks Apply Negative Interest Rates

According to official data, Germany has regressed with the worst contraction in three months since the 2008 global financial and economic crisis. More than 100 banks in the country apply negative interest rates to customers. The German economy is stagnating, according to data released by the Federal Statistical Office Statistisches Bundesamt on Friday. The officials stated the following statements: '' The corona epidemic hit the German economy hard. It was the biggest decline since the financial and economic crisis in the first quarter of 2008 and the second biggest decline since the German unification. '' Statistisches Bundesamt said, "In the 1st quarter of 2009 (-4.7%), a larger quarterly drop was recorded." Europe's largest economy shrank 2.2% in the first quarter of the year. The eurozone economy fell to a record low of 3.8% in the first quarter. Economists, including those at Deutsche Bank, expect a worse collapse in the second quarter as all the effects of the restrictions become evident. Angela Merkel cautioned that if the coronavirus transmission rate deteriorates, Germany could return to outbreak measures.