The Coronavirus hit the economy harder than the 2009 crisis.
The crisis provoked by the coronavirus pandemic has seriously hit the economies of European countries. In particular, Germany's GDP fell by 9.7% in the second quarter of 2020, reports Deutsche Welle, citing official statistics.
вЂњThese data are considered optimistic because according to preliminary estimates, the economic decline in the second quarter of 2020 was expected at 10.1%,вЂќ the report says.
However, the fall of 9.7% is still much worse than at the peak of the financial crisis in 2009 (-4.7%). It is also the worst indicator since the beginning of the quarterly calculation of the German GDP changes in 1970.
Also, the increase in government spending to combat the effects of the economic crisis caused by the Coronavirus pandemic led to a budget deficit of 3.2 percent in Germany, while a budget surplus of 2.7 percent was recorded for the same period last year.
Earlier, the International Monetary Fund (IMF) estimated that overall recovery from the global economic crisis will require more than $8 trillion.
The IMF also officially announced the beginning of the global economic crisis and changed the assessment of global GDP dynamics in 2020. It is expected that the world economy will shrink this year by 3%, but will grow by 5.8% in 2021.