Germany suffered its first recession since the start of pandemic, extinguishing hopes that Europe’s top economy could escape such a fate after the war in Ukraine sent energy prices soaring. Oliver Crook reports on Bloomberg Television.
Follow Bloomberg for business news & analysis, up-to-the-minute market data, features, profiles and more:
Connect with us on…
Twitter:
Facebook:
Instagram: …(read more)
BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
Germany Latest: Economy Suffers First Recession Since Covid Pandemic
Germany, Europe’s largest economy, has officially entered a recession for the first time since the Covid-19 pandemic hit the global stage. The country’s GDP (gross domestic product) contracted by 2.2% in the first quarter of 2021, following a 0.9% decline in the last quarter of 2020.
The economic decline can be attributed to the strict lockdown measures imposed by the German government to contain the spread of the virus. The closure of businesses, travel restrictions, and decreased consumer spending have all taken a toll on the economy. Furthermore, Germany’s manufacturing and exports, which are vital drivers of its economy, have also been severely impacted by disruptions in global supply chains.
Notably, the service sector, which has been disproportionately affected by lockdown measures, experienced a 4.8% decline in output. Restaurants, hotels, and non-essential retail stores faced significant challenges due to reduced foot traffic and a decline in tourism. These sectors were further hit by ongoing restrictions and uncertainty, leading to layoffs and business closures.
However, there is a glimmer of hope on the horizon. Germany’s economy minister, Peter Altmaier, believes that the government’s vaccination campaign and recent easing of restrictions can pave the way for a strong recovery later in the year. The country has accelerated its vaccination program, and with a significant portion of the population vaccinated, it is expected that economic activity will gradually pick up.
Additionally, the government has implemented significant fiscal stimulus measures to support struggling businesses and workers affected by the pandemic. Programs such as Kurzarbeit, which allows companies to reduce working hours while the government covers a portion of employee wages, have helped mitigate job losses and maintain a level of stability in the labor market.
Despite these positive developments, economists warn that the recovery may still face challenges. New Covid-19 variants and potential future outbreaks could necessitate further restrictions, prolonging the recovery period. Moreover, the global economic landscape remains uncertain, with ongoing disruptions in supply chains and weak demand from Germany’s trading partners.
Germany’s recession is not unique, as many other countries around the world have faced similar economic hardships due to the pandemic. However, as the engine of the European economy, Germany’s performance is closely watched and has implications for the broader region’s recovery.
In conclusion, Germany’s first recession since the Covid-19 pandemic brings into sharp focus the economic toll of lockdown measures. The strict restrictions imposed to curb the spread of the virus have taken a significant toll on the country’s GDP, particularly in the service sector. However, with the acceleration of vaccination efforts and fiscal stimulus measures, there is hope that Germany’s economy will rebound in the coming months. Nonetheless, the path to full recovery remains uncertain, as the global economic situation and future waves of the virus continue to present challenges.
Cheap Russian energy for Germany is now thing of the past. Foundation of any successful society and economy is cheap energy -German leaders have cut their own noses off their German faces to please their masters in Washington DC,.
Act of a vassal state. Most German people have no idea who is their real masters. Why USA , UK have over 60 military bases across Germany ? Why USA has over 90 military bases across Italy ?
The maket trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investrs is at its lowest point. I read an article of people that grossed profts up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?
So funny how you tell,,open your eyes,see recession is decreased, in september germany will be out of recession, news people always be like earning food by telling lies in present not showing positive things whuch is going to happen,ahame on you media
hope German finance minister to assess the economy and make right decision like an adult rather than zombie like soulless drug addicted old smelly grandpa.
And stop talking about delusional hypocritical energy policy and nationalwide greenwashing.
That’s what happens When your dependent ass fucks with a real super power.
Viva le brexit.
Thank to the German government!!! The inflation relief bonus (Inflationsausgleichsprämie) allows employers to pay their employees a bonus of up to EUR 3,000 tax-free and free from social security costs before 31 December 2024. In addition to the possibility to make a one-off payment to all employees!!!
SLAVA recession!
One dog looks towards the dark and starts barking loudly, seeing it, the remaining 8-10 dogs also start barking towards the dark.
The relations between America and Europe countries are also like this.
Change in mood? What a soft way of putting it. The prices are sky high!!! They don't have the money to spend!!!
Germany is a slave of america so german should do as america say them to do. Dont use your brain. We dont care if germany go to hell but order of america should be obey by germans. Make it a point.
Germans, I’m from the US, so take this seriously- our government is compromised, you are blindly following people who intentionally wanted to destroy you all along. And still, you’ll, follow us. I can’t understand it, wth is the matter with you?
And the shame is up and the rest of the world will follow you can f*** with numbers all you want you can't hide from the truth when the truth is you're out of money and its economic system is at its end so too is this entire world and everything that we've done milk government and nothing the way it is now can survive ai and ww3
BUT WE NEED UKRAINE AHHHHH
Late 20's of the last century there also was a recession. Ans then came 1933… You understand?
But but Russia bad…
Those sanctions were supposed to hurt the other side, maybe the 20th round will do the trick.
consumer spending less what about oil prices due to war in russia
Putin has the last laugh as Germany the third largest contributor to NATO and leading European economy enters recession,
German is learning the price of thinking you can just shut off Russia Oil and Gas,
Germany’s industrial sector depends on gas as both an energy source as a feedstock for the production of fertilizers and other chemicals. The threat of potential industry and economic damage to the Nation was not headed as Germany rushed to completely turn off the taps.
The fears it could spark a recession came true and those who said an end to Russian oil and gas imports would hurt Germany more than Russia was indeed the case
Nato and the West were euphoric that sanctions would have severe and lasting economic costs and would help impede Russian war machine.
“The illegitimate restrictions imposed on the Russian economy in the medium term have had a negative impact on it.
Russia’s economy recovered its poise, the IMF expects it to grow by 0.7% this 2023 year—on a par with France, and even as the British and German economies shrink. The hope that the state of Russia’s economy will provide any sort of constraint on the war has faded.
It's the German economy that paying the price, no more war toys for Volodymyr Zelenskyy from Germany
wow sanctions on Russia worked so well :O
A recession created by incompetent politicians making bad decisions.
Since before Christmas I have been pointing out on the internet the obvious:
The UK is doing Ok, Germany is in the shit.
There are good economic reasons for me saying this: Germany is a manufacturing nation with no raw material. It relies upon Russian gas and minerals to make things, which it mainly sells to China.
With the war in Ukraine all of that has disapeared. China relied upon the West to buy Chinese goods, allowing it to buy German goods. That entire loop has collapsed.
And as Germany is the economic power house of the EU – when Germany struggles so does the EU.
I had argued this long and hard, and had been ridiculed by many posters.
It didn’t help that the UK press is always doom and gloom, the glass is half full, whereas the EU press never talks about problems.
Well finally I am vindicated. Germany is officially in a recession, (which both Press and Posters assured me would not happen), and the UK isn’t (which they assured me it was).
Nice to now post all over Youtube “I told you so”
This is what shooting yourself in the foot(Sanctioning Russia) looks like.
Imagine Germany imposed the same sanctions on China as they did on Russia.
It's not "the Pandemic." It's people's alarmist, uninformed and cult-like reaction to the pandemic and many other externalities. As someone on the outside, this isn't my forte I will admit, but I have to believe energy policy and cost is dragging down Germany's economy. Leaders should be held accountable when their policies fail and not be allowed to just plead ignorance, like nothing is their fault, when there was a massive group of people who were critical of all of these policies and were censored, ignored and ridiculed.
As the economic crisis keep rising, one needs to have different streams of income, a well detailed diversified investment portfolio in the financial markets is needed to survive, as well as secure a profitable investment future, Thanks so much Mr Gregory Thomas Patchak for improving my portfolio
Not much comment on this from all those nauseating remoaners who insist Brexit has left the UK worse off economically than EU countries.
Surprisingly, they use the official definition for recession: << Two consecutive quarters of falling GDP. >>
Here in the United States, we just change the definition.