German Central Bank Report: Germany's Economy Is In A Severe Recession And Will Not Recover In The Short Term
According to a report by Reuters Frankfurt on April 20, Deutsche Bundesbank issued a monthly economic report on April 20 local time that the German economy is in a severe recession and recovery is unlikely to come soon because of many restrictions related to the new coronary pneumonia outbreak The measure will continue for a long time. Germany is the largest economy in Europe. Since mid-March, it has actually been blocked due to the epidemic, and the economy has stalled. However, the country is currently discussing relaxation of some restrictions in the coming weeks. The German central bank said: "Until the introduction of vaccines and other medical solutions, various restrictions may be maintained. In view of this, it seems that the economy is unlikely to recover quickly and strongly." The International Monetary Fund expects the German economy to contract by 7.5 %. The range of various private forecasts is very wide, except for a few, it is expected that the recession will be greater than in 2009, when the economy contracted by more than 5%. Deutsche Bundesbank said that the data for the first quarter has been severely affected, and the situation will be worse in the second quarter, because car production and household consumption have dropped sharply. But it said, "Don't worry about the German economy falling into a self-reinforcing downward spiral", saying that loose fiscal and monetary policies will support the recovery. The bank also said that in the next few months, as the impact of falling oil prices is quickly transmitted to customers, the inflation rate may drop significantly. Controlling inflation is the primary goal of the European Central Bank.