Germany’s Economy Contracted 9.7% During Q2

Germany’s statistics office said the country’s economy contracted at a record pace of 9.7% in Q2 as consumer spending, corporate investment and exports collapsed due to Coronavirus.

The office added that the economic downturn far exceeds what happened during the financial crisis more than a decade ago, and represented the largest drop since Germany began recording quarterly GDP accounts in 1970.

But the reading represents a slight revision, up from a previous estimate of gross domestic product for the April-June to -10.1% on a quarterly basis, published by the office last month.

Consumer spending shrank by 10.9% on a quarterly basis, capital investment decreased by 19.6%, and exports decreased by 20.3%, as shown by the adjusted GDP data in light of seasonal factors.

Construction activities, a constant engine of growth in the German economy, fell 4.2% on a quarterly basis.

The statistics office said the only positive factor came from government consumption, which rose 1.5% on a quarterly basis due to a government rescue program related to the Coronavirus.