Ger­many faces more eco­nomic woe as re­cov­ery suf­fers re­verse

The Daily Telegraph - Business - - Business - By Rus­sell Lynch

GER­MANY’S eco­nomic re­cov­ery risks be­ing de­railed by a sec­ond wave of Covid-19 as the coun­try bat­tles back from its deep­est slump in at least 50 years, ex­perts have warned.

Out­put in Europe’s big­gest econ­omy plunged by 10.1pc be­tween April and June, more than dou­ble the hit it suf­fered in early 2009 af­ter the financial cri­sis – and the worst fall since the Fed­eral Sta­tis­ti­cal Of­fice (FSO) be­gan col­lect­ing quar­terly data in 1970.

Of­fi­cials now fear that a fresh surge in Covid in­fec­tions may put paid to hopes of a swift bounce back.

Ger­many recorded 839 new cases in the lat­est 24 hours, its high­est level for six weeks ac­cord­ing to data from Johns Hop­kins Univer­sity. The coun­try’s public health in­sti­tute called the devel­op­ment “very con­cern­ing”.

The Ger­man data came as un­em­ploy­ment across the 19-mem­ber Eu­ro­zone edged up to 7.8pc, its high­est since Fe­bru­ary last year.

Europe’s statis­tics agency warned true un­em­ploy­ment could be much higher be­cause many un­em­ployed work­ers were no longer look­ing for jobs. The eu­ro­zone over­all is ex­pected to un­veil an even deeper 15.6pc col­lapse in GDP to­day.

How­ever, the gov­er­nor of France’s cen­tral bank sug­gested its own eco­nomic slump may not be as bad as feared. François Villeroy de Gal­hau said the na­tion’s per­for­mance may be “a lit­tle bet­ter” than the 10pc fall in GDP pen­cilled in, with out­put re­turn­ing to pre-cri­sis lev­els in early 2022.

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