According to the Federal Ministry of Finance, the German economy should experience a stronger recovery in the current quarter than it recorded in the second quarter. Thanks to a more massive dismantling of anti-epidemic measures.
The largest European economy in the first quarter of this year fell by 2.1 percent quarter on quarter. In the second quarter, however, it increased its output by 1.5 percent, and in the period from July to September, gross domestic product of Germany should grow even more. This follows from the current report of the Federal Ministry of Finance.
According to Olaf Scholz’s office, the dismantling of anti-epidemic measures, which Angela Merkel’s cabinet joined during the spring and early summer, will begin to take full effect in the third quarter. Recent surveys mapping consumer or business confidence in the economy have shown that optimism among households and businesses is growing, as is economic activity during the summer months.
The economic recovery was also reflected in the state budget, where tax collection began to increase. However, budget revenues are still less than two percent lower than in 2019. According to the Ministry of Finance, this proves how deeply the coronavirus crisis has penetrated German public budgets.
