Germany, among others, is experiencing its “worst result since the economic crisis of 2008-2009 and its “second worst” since the Reunification in 1990.
The national economies are collapsing. Germany, France, Portugal, the United Kingdom… The Express reports on the latest figures illustrating the désagrègement economic caused by the crisis of the sars coronavirus.
Plunge 10% to the GDP of Germany
Germany is officially entered into recession in the first quarter, with a fall of 2.2% of its gross domestic product (GDP), before a dip even more brutal is expected in the spring. The country is already in recession, “technical”, that is, two consecutive quarters of contraction in GDP, after the institute of statistical Destatisa revised down its estimate of GDP in the last quarter of 2019, at-0.1% compared to 0% initially announced.
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The country is experiencing its “worst result since the economic crisis of 2008-2009 and its “second worst” since the Reunification in 1990, said the institute, which published these figures this Friday. Ten days were enough to kneel down the first economy of the euro area : measures of restrictions aimed at controlling the pandemic, with the price of a strong impact on the activity, began in mid-march, at the end of the quarter.
Between the beginning of April and end of June, Germany is expected to experience a dip of 10% of its GDP on a year earlier, unpublished for fifty years, according to projections common to the main economic institutes. For the entire 2020, the German government expects a recession of 6.3%, the highest since the beginning of statistics in 1970. And the pandemic is expected to cut nearly € 100 billion in tax revenue compared to the previous forecast of October, said Thursday the minister of Finance.
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Portugal will be in 2020 a recession 6.8%
In Portugal, the gross domestic Product fell in the first quarter of 2020 of 3.9% compared to the last three months of 2019, due to the global health crisis, according to a provisional estimate published on Friday by the national statistics Institute (Ine). This decline reflects the effects of the pandemic Covid-19 on economic activity” from the month of march, explained the Ine in a press release.
The decline is 2.4% compared to the same quarter last year. The Portuguese exports have dropped 7.3 per cent quarter-over-quarter, and by 5.1% year-on-year. The domestic demand for its part, decreased by 1.9% in quarterly variation and a 1% a year.
This decline in economic activity is more pronounced than expected by the european Commission, which called in early may on a drop of 1.8% in quarterly variation. According to Brussels, the Portugal should be aware of a recession this year, of 6.8%, after a growth of 2.2% in 2019.
in The Uk, the worst performance since 2008
The United Kingdom has also begun to feel the economic shock of the coronavirus in the first quarter, with a fall of 2% of GDP, or a taste of the historic recession that awaits the country.
On the single month of march, at the end of which the containment has started in the country, the Office for national statistics (ONS) estimated in a press release Wednesday, the plunge of the GDP to 5.8%, the worst decline in a month on the other ever since the beginning of the data collection in 1997. This decline in GDP of 2% in the first quarter, compared with the previous, is the worst performance since the fourth quarter of 2008 (2.1%), the financial crisis.
France : largest decrease in the history of the evaluations of the GDP
Finally, in France, it is also unique. The GDP hexagonal tumbled 5.8% in the first quarter, according to estimates from the Insee published 30 April : the largest decrease in the history of the quarterly estimations of the GDP, which began in 1949.
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This contraction greatly exceeds the declines observed during the first quarter of the 2009 financial crisis (- 1.6 per cent) or even the second quarter of the social crisis of 1968 (-5,3%). After a GDP decline of 0.1% in the last quarter of 2019, this collapse has brought France back into recession.
