Germany faces more economic woe as recovery suffers reverse
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.