The figures released by the federal statistics authority
Destasis, also showed revisions to 2019 fourth-quarter figures from zero growth
to a contraction of 0.1%. This meant that Germany's GDP growth has been
negative for two successive quarters, the technical definition of a recession.
The first quarter figures are only a partial indication of
how much the Coronavirus pandemic has harmed Europe's largest economy.
Though experts had expected a contraction of around 2%, the
drop is not as bad as in some of its neighbours, such as France which has seen
a decline of 5.8%, and Italy which reported a 4.7% fall. This was aided by
Germany's 16 states' decision to allow factories and construction sites to stay
open, as well as an unprecedented rescue package by the government.
Germany had imposed restrictions due to the Coronavirus
pandemic, and this remained in place through early May. It also drastically
reduced exports and consumer spending.
Employment figures remained stable in the first quarter. The
coronavirus outbreak had only a "modest" effect on employment between
January and March, the agency said, partly thanks to Germany’s
reduced-working-hours program, which allows firms to keep workers at home
without laying them off.
