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George Ma
April 9 16:44

Germany and France are going into recession because of the coronavirus

Worst time will be for Germany in the second quarter
Coronavirus pandemic is slowly turning into a recession for two largest economies in the Eurozone, and it could be record-breaking. This is stated in the latest published forecasts of the situation in Germany and France.

According to the estimates of five leading German economic institutions, the worst time will be for Germany in the second quarter of this year, when GDP will fall by 9.8%. "This is the highest figure for the last half a century," - says IFO analyst Timo Wolmershäuser.
In France, every two weeks isolation and quarantine measures result in a loss of 1.5 % of economic growth. This is the data from the Bank of France, which warns of the fastest recession since the Second World War. According to these estimates, due to the coronavirus pandemic the country's GDP will drop by 6% in the first quarter.
The World Trade Organization expects a significant decline in international trade due to the coronavirus. Its volume may decline by 13-32%. Organisation presented two forecasts: optimistic and pessimistic, - explained WTO Director General Robert Azeved:
"If the pandemic manages to be controlled relatively soon and the right measures are taken, the volume of trade and production may return to its pre-crisis level in the next, 2021".
According to WTO estimates, under an optimistic scenario the decline in trade will be less significant. To this end, the organisation calls on the world community to take urgent measures to mitigate the impact of the pandemic on people, companies and nations.