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German GDP Collapsed By A Record Of 10.1% In The Second Quarter

German GDP Collapsed By A Record Of 10.1% In The Second Quarter

The German economy in the second quarter of 2020 shrank by 10.1% compared to the previous quarter, this is the maximum decline since the beginning of the indicator, according to preliminary data from the Federal Statistical Agency of Germany (Destatis).

In annual terms, the decline in GDP, adjusted for the number of working days, was 11.7%. Experts, on average, expected a decrease in the first indicator by 9% and the second by 11.3%.

Destatis noted that it recorded a sharp drop in exports and imports of goods and services, as well as consumer spending, while government spending increased.

The final data on the dynamics of German GDP for the second quarter will be published on August 25.

Also, on July 30, the Federal employment Agency reported that the number of unemployed in Germany in July fell for the first time since February. The figure fell by 18,000 to 2.923 million people. Unemployment remained at the June level of 6.4%, the highest since August 2015.

Analysts on average predicted an increase in the number of unemployed by 43,000 and an increase in unemployment to 6.5%, according to data from Trading Economics.

The number of open vacancies in the country in July decreased by 226,000 compared to the same month of the previous year - to 573,000.