The coronavirus pandemic has led to the German economy contracting by a whopping five per cent, according to preliminary figures. The only other time Germany has seen a collapse this big since the Second World War was during the global financial crisis in 2009, where the decline was even stronger at 5.7 percent.
Data from the Federal Statistics Office showed today show that Germany’s economic activity collapsed despite the government’s aggressive push to navigate the economic ruin caused by the Covid-19 outbreak.
Veronika Grimm from the Expert Council for the Assessment of Overall Economic Development said: “The year 2020 was an exceptional situation.
“Stabilisers such as short-time work prevented bankruptcies and a slump in the labour market with the bridging aid.”