Despite numerous easing, social and economic life is still far from normal. The Bundesbank sees only a slow recovery - and paints a bleak picture.
Frankfurt / Main (dpa) - According to the Bundesbank, the German economy will only recover slowly from the deep slump as a result of the Corona crisis.
"There is currently much to suggest that overall economic developments will move up again in the course of the second quarter as a result of the easing measures, and that a recovery will get underway," the central bank wrote in its monthly report for May published on Monday. "But there is a great deal of uncertainty about future economic developments."
According to initial calculations by the Federal Statistical Office, gross domestic product (GDP) shrank by 2.2 percent in the first quarter of 2020. As a result, Europe's largest economy plunged into recession - although basically only March affected the virus-fighting restrictions in the first quarter.
"Despite the easing measures that have been introduced, social and economic life in Germany is still very far from what was previously considered normal. The available economic indicators paint a correspondingly bleak picture," the Bundesbank economists state. "The German economy remains firmly in the grip of the coronavirus pandemic in the second quarter. Economic output is likely to be significantly lower than the average of the already depressed first quarter." Various forecasts in the market assume a slump in German GDP of up to 14 percent.
In view of the bleak outlook, demands for a government stimulus package are growing louder. "Due to the good starting position, fiscal policy should still have enough scope for a possibly strong temporary impulse," the Bundesbank notes, but at the same time advises: "An economic stimulus program should be targeted and, above all, should be temporary. Other government goals, such as climate protection or digitization could be considered. "
Bundesbank monthly reports
Federal Statistical Office on GDP
Long range of GDP by years
Corona statistics Federal Statistical Office