The German economy shrank by 10.1% during the April-June period from the previous quarter, the state statistics agency Destatis said Thursday.
The office said “it was the steepest decline since quarterly GDP calculations for Germany began in 1970 and was even more pronounced than during the financial market and economic crisis [in 2009]”.
Exports and imports, as well as consumer spending and business investment had “massively collapsed” in Q2, Destasis said.
The government’s stimulus packages to help keep workers on payrolls have cushioned the economic impact of the coronavirus crisis. Still, the Federal Employment Agency said Thursday that the number of unemployed was 57,000 higher than in the previous month.
Even though the country’s economy has started bouncing back, experts say it is far from the pre-pandemic level and will not reach break-even until 2022 at the earliest.
On Friday, France’s national statistics office said the country’s economy shrank by 13.8% in the second quarter.