Left Menu
Development News Edition

German activity picks up, can't escape official recession

PTI | Frankfurt | Updated: 25-05-2020 16:13 IST | Created: 25-05-2020 15:47 IST
German activity picks up, can't escape official recession
Representative Image Image Credit: Wikipedia

A key indicator of German business outlooks bounced upward in May as more businesses and activities re-opened — but the index remained far below normal readings as Germany faced a long journey toward full recovery from the coronavirus downturn. Revised official figures released separately Monday showed the economy has now recorded two straight quarters of falling output, meeting a commonly used definition of a recession.

The Ifo institute index based on surveys of businesses rose to 79.5 from 74.2 in April, a strong increase but still far below normal. "The gradual easing of the lockdown offers a glimmer of hope," said Ifo President Clemens Fuest. Carsten Brzeski, the chief eurozone economist at ING, said in a research note that "today's Ifo index echoes more real-time signals that economic and social activity has started to pick up significantly since the first lifting of the lockdown measures in late April." He said the upturn from historic lows was "highly welcome" but "no reason for complacency or even hubris." He said the German economy is unlikely to return to its pre-crisis level before 2022 even if there is no second wave of the virus outbreak.

Official statistics released Monday confirmed an earlier reading that the German economy shrank by 2.2% in the first quarter of the year compared with the same period in 2019. That was the biggest quarterly decline since the 2008-2009 global financial crisis. The more detailed figures in the second release showed that private consumption and exports were the hardest hit. Investments in the engineering sector, construction, and public expenditure helped prevent an even bigger downturn.

The figures revised growth for the last quarter of 2019 to minus 0.1%, meaning the country has recorded two straight quarters of falling output. Figures for the second quarter should show an even deeper downturn since the first-quarter figures only captured part of the lockdowns.


TRENDING

OPINION / BLOG / INTERVIEW

COVID-19 seems cooking biggest ever global scam

The increasing number of corruption cases on COVID-19 funds from throughout the world and involvement of high profile persons indicate that the countries cant ignore corruption in their pandemic response programs. This has generated the nee...

Health Management Information Systems lack holistic, integrated, and pandemic resilient character

Being a part of the United Nations system, the World Health Organization WHO deserves its share of rebuke for its alleged failure issue COVID-19 health emergency alerts on appropriate time. However, the pandemic has also exposed loopholes i...

Pride in the time of coronavirus: a welcome move online?

This year is different in many ways not least as celebrations are also taking place against the dramatic backdrop of a global health crisis and a resurgence in grassroots activism following the death of George Floyd in Minneapolis. ...

COVID-19: Weighing up the benefits and limitations of edtech platforms

Edtech companies shouldnt focus on merely pushing contents, but to provide an interactive, effective teaching and learning environment. ...

Videos

Latest News

Lifetime discrimination may increase risk of hypertension among African Americans: Study

Lifetime discrimination may increase the risk for hypertension, also known as high blood pressure, in African Americans, according to a recent study. The research was published in the journal Hypertension, an American Heart Association jour...

VIBGYOR Group of Schools Announces List of India's First Scholarship for Financially Affected Parents due to COVID-19 Pandemic

VIBGYOR announces recipients for Indias first need-based scholarship VIBGYOR Edubridge Scholarship programme for parents severely affected during the pandemic VIBGYOR urges parents to take advantage of its innovative programme to maintain...

FACTBOX-Latest on the worldwide spread of the coronavirus

Rising coronavirus cases in 39 U.S. states cast a shadow over the nations Fourth of July celebrations as health experts worried that holiday parties would cause a further spike in infections that could overwhelm hospitals.DEATHS AND INFECTI...

Haven't got CWI backing for ICC Chairman's post: Dave Cameron

Aspiring to succeed Shashank Manohar as ICC Chairman, former Cricket West Indies President Dave Cameron has revealed that he hasnt even got the backing of the body he once led and surprisingly, that might actually work to his advantage. Cam...

Give Feedback