The German economy had its biggest slump in 50 years. – Serialpressit (News)

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The German economy shrank 10.1 percent from April through June compared to the previous quarter, the biggest decline since the government starting keeping the data in 1970.

But the figure, which covers the peak period of pandemic lockdowns, may already be old news. Surveys of business managers indicate that Europe’s largest economy is rebounding quickly, though it will probably be months or years before growth returns to normal, and the risk of further setbacks is high.

The German labor market stabilized in July, according to data published Thursday by the nation’s labor office. The number of unemployed people fell by 18,000 after rising sharply from April through June. But joblessness could rise later in the year if many businesses founder, and workers who are now on furlough become unemployed.

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Germany is in a better position than other European Union countries like Italy or Spain, in part because the government was effective in containing the spread. At the same time, new infections of the coronavirus are rising again as Germans return from holidays abroad, and there is fear of a second wave.

The pandemic has left deep scars on the German economy even if the pain is less severe than in many other countries, including the United States.

About 7 million people in Germany are on government-subsidized paid furloughs, and not all will get their jobs back. Companies like the automaker Daimler and Deutsche Bank are cutting their workforces permanently in response to changes in their industries that go beyond the pandemic.

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The post The German economy had its biggest slump in 50 years. appeared first on New York Times.

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