Germany entered a recession after registering a drop of 2,2% in the first quarter of 2020 of its Gross Domestic Product (GDP), compared to the previous three months, where it had seen a decrease of 0,1%. This fall is the biggest since the 2008 economic crisis, according to the “Reuters” agency, citing the German statistical office Destatis this Monday, May 25.
Destatis reveals that the drop recorded in the first quarter of the year compared to the previous quarter is only surpassed by that which occurred in the first quarter of 2009, when German GDP fell by 4%. "Although the spread of the coronavirus did not significantly affect economic performance in January and February, the impact of the pandemic was quite severe in March," explains the organization.
In relation to the first three months of 2019, Germany's GDP fell by 1,9%, after growing 0,2% year-on-year between October and December 2019. In the first three months of 2020, consumption decreased a substantial 2,2% over the previous quarter, with a 3,2% drop in household spending, while public spending increased 0,2%.
Business investment, on the other hand, showed a 0,2% drop in investment in gross fixed capital formation, in contrast to the 1,6% increase in the first quarter of 2019. Exports and imports also contributed negatively to the economy Germany, with decreases of 3,1% and 1,6%, respectively.