The German economy is set to see a significant fall in the second quarter despite easing of coronavirus containment measures, the Bundesbank said in its monthly report, released Monday.
“Despite the easing measures that have been introduced, social and economic life in Germany is still far from what was previously considered normal,” the bank said.
Although there are many indications that macroeconomic development will improve again in the course of the second quarter due to the easing of containment measures, there is a very high uncertainty about future economic development, the bank noted.
The largest euro area economy had entered a technical recession in the first quarter with the GDP contracting 2.2 percent, the biggest since the global financial crisis in 2008-09.
Bundesbank said the prospects for the labor market for the coming months are also poor.