The German economy began to recover after the recession caused by the pandemic coronavirus. Indicators of business activity showed growth for the first time in five months, according to Bloomberg.
The index of the Purchasing Managers Index (PMI) jumped from 47 in June to 55.5 points in July, better than the forecasts of economists. Growth in the service sector, although manufacturers reported a significant increase in export sales. Despite this, experts note that the main problem for the recovery of the economy remains the labor market. About 30 percent of manufacturers reported a decrease in headcount.
Eurozone PMI readings in June reached 47.5 per point (down from 31.9 in may). Many European countries have removed some of the restrictions, but most industries are not at full strength and continue to cut staff.
It is expected that Germany’s GDP will decrease by 6.3% in 2020, in the first quarter, the economy fell by 2.2 percent compared to the last three months of 2019. Despite the difficult situation due to the pandemic, Germany was one of the European countries with the most resilient to the crisis economy.
July 21, EU leaders agreed on a rescue plan for the European economy to 750 billion euros after days of negotiations.
Video, photo All from Russia.