Germany is facing another crisis as the country has lost almost 10-years of economic output wiped out in the second quarter amid the pandemic.
Germany’s economy shrunk by 10.1% in the second quarter, and the countries statistics office said the GDP index had adjusted for inflation, but the calendar effects crashed to 94.26 in the period of April to June.
The statistics office said, “Most recently, the chain index was lower at 93.19 in the fourth quarter of 2010, so that’s roughly 10 years ago.”
This will cause Chancellor Angela Merkel more worry over her economy as exports collapsed. Durin the financial crisis in 2009, Germany’s economy only shrunk by less than 5%.
Despite this construction companies are not expecting collapse due to the coronavirus recovery package. The German Institute for Economic Research (DIW) warned that recovery could take up to two years to recover the loses.
DIW economic chief Claus Michelsen said: “The signs are clearly pointing to recovery.
“But despite strong growth, it will probably take two years before the historic slump in spring is made up for.”
Economist Carsten Brzeski at the bank ING Germany said their recovery will be “a long ride.”
Brzeski said, “This picture shows the deepest but also the shortest recession ever. All monthly indicators since May have already pointed to a strong rebound of economic activity in the course of what has been the worst quarterly performance ever.”