Fiscal Balance in Germany
Germany - Fiscal BalanceThe economy is expected to have contracted sharply in the second quarter due to Covid-19. In April, industrial output fell at the steepest clip since at least the early 1990s, particularly on the back of weakness in the manufacturing sector amid the global lockdown weighing on foreign demand. The composite PMI, furthermore, remained in contractionary territory throughout the quarter on broad-based weakness in the private sector. Meanwhile, boding ill for household spending, the unemployment rate continued to rise in May while retail sales plummeted in April. More positively, the composite PMI rose in May and June, suggesting activity recovered somewhat towards the end of the quarter following the lifting of lockdown restrictions. In other news, the government announced fresh stimulus of EUR 130 billion in early June. Partly financed through net new borrowing, the package focuses on reducing the tax burden and further liquidity support.
Germany - Fiscal Balance Data
|Fiscal Balance (% of GDP)||0.9||1.2||1.2||1.9||1.4|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||-0.19||0.41 %||Jan 01|
|Exchange Rate||1.12||0.65 %||Dec 31|
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July 9, 2020
In May, merchandise exports grew 9.0% month-on-month on a calendar- and seasonally-adjusted basis, swinging from the steep 24.0% contraction in April.
July 7, 2020
Industrial production rose 7.8% calendar-adjusted month-on-month basis in May (April: -17.5% mom).
June 25, 2020
In early June, the German government announced fresh stimulus of EUR 130 billion to kickstart the economy, bringing the total fiscal stimulus up to around EUR 1.2 trillion (roughly equivalent to around 35% of 2019 GDP) which has been unleashed as part of efforts to buttress the economy against fallout from Covid-19. The new stimulus equals around 4% of GDP and encompasses numerous measures, including reducing the tax burden through temporarily lowering VATs until the end of this year, as well as further liquidity and loan support of around EUR 25 billion for SMEs through August, conditional on at least a 60% annual drop in sales in April and May.
June 25, 2020
Consumer confidence is expected to recover further from the Covid-19 shock at the opening of the third quarter; however, sentiment is forecast to remain pessimistic.
June 24, 2020
The business confidence indicator came in at 86.2 in June, up from May's 79.7.