Germany Economic Outlook
May 5, 2020The economy is expected to have contracted sharply in the first quarter due to the Covid-19 pandemic and government measures to curb the spread of the virus, which have paralyzed activity. However, the economic fallout will likely be much greater in the second quarter, despite some easing of restrictions. Business sentiment nosedived to a historic low in April, while the lockdown and disruptions to global demand and supply chains plunged the composite PMI to an all-time low in the same month. The services sector has been particularly hard hit by the containment measures. Furthermore, consumer confidence is expected to sour significantly in May on the back of deteriorating views on the economy and income, which will restrain household spending. To counteract the crisis, the government is expected to borrow significantly more than initially anticipated.
Germany Economic GrowthThe economy is expected to record its worst performance in decades this year, owing to the Covid-19 pandemic and containment measures weighing heavily on the domestic and global economy. The governmentâ€™s fiscal stimulus measures should cushion the fall somewhat, although a prolongation of the crisis is a key downside risk. FocusEconomics Consensus Forecast panelists project the economy to contract 5.8% in 2020, which is down 1.5 percentage points from last monthâ€™s projection, and to grow 4.8% in 2021.
Germany Economy Data
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Germany Economic News
May 25, 2020
The economy shrank 2.2% quarter-on-quarter in the first quarter, thus entering a technical recession for the first time in seven years and marking the sharpest contraction since the global financial crisis as lockdown measures at home and abroad weighed heavily on both domestic and foreign demand.
May 25, 2020
Sentiment among German businesses recovered somewhat in May, but remained entrenched in pessimistic territory, as the ifo Business Climate index rose to 79.5 from a revised 74.2 in April (previously reported: 74.3).
May 15, 2020
Covid-19 has left a deep mark on the German economy in the first quarter of the year, pushing the economy into a technical recession, and worse is still to come.
May 14, 2020
Harmonized consumer prices rose 0.4% month-on-month in April, up from March’s 0.1% increase.
May 8, 2020
The German external sector ended the first quarter on a sour note due to the impact of the Covid-19 pandemic.