Financial and business news from Bulgaria

German economy with record quarterly decline

German companies and consumers have cut their spending sharply during coronavirus-related restrictions, leaving the economy in a deep decline from which it will slowly recover.
Germany's economy shrank by a record 9.7 percent on a quarterly basis in the period from April to June. On an annual basis in the second quarter, Europe's largest economy reported a decrease of 11.3%, data from Germany's statistical office showed.

The figures also show that investment collapsed by 7.9% in the second quarter and household spending fell by 10.9%. Exports marked a contraction of over 20%, reported Bloomberg, quoted by investor.bg.

The country recorded a deficit of 3.2% for the six months to June. This is the first time since Europe's debt crisis in 2013.

After the second quarter, industrial production and retail sales have come back to life, suggesting that the economy is making progress in recovering lost positions. But companies remain skeptical of the outlook, and signs that the rapid rebound after the blockade ends is starting to slow are increasing.

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