Economies across the world are struggling with the impact of the COVID-19 outbreak. Experts in Germany, one of the largest economies in Europe, are now indicating the country’s economy could shrink due to the outbreak of the virus. Such is the situation in Germany, DekaBank economist, Andreas Scheuerle warned the virus was “now in control” of the country.

Thomas Gitzel of VP Bank, also insisted the economy’s recent decline from the coronavirus outbreak is “mind-blowing”.

He added: “Honestly, secretly an even more pronounced crash was to be expected.

“This does not change the fact that the decline compared to the previous month is mind-blowing.

“This gives an idea of how hard the German economy will be hit by the consequences of the coronavirus.

“It should be no consolation that it may hit other economies even harder, which means that at the moment no other country is buying German goods.

“We are currently experiencing an unprecedented standstill of our global economy that has never been there in times of peace.”

Although Germany’s Dax stock market experienced an uptick over the last few days, at the start of the month the market tumbled dramatically.

From March 4, the market dropped from 12,137 points to 8,447 on March 18.

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According to the Institute for Economic Research (IFO), which is based in Munich, the economy could drop by six percent.

The IFO’s President, Clemens Fuest said: “There has never been a stronger decline in unified Germany.

“Both the uncertainty and downside risks are very large.

“Nobody knows exactly how the cancellations and closings will affect the economy.”

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Such is the situation across the continent, the European Central Bank (ECB) has launched an emergency programme.

With Italy one of the worst affected countries in the bloc, the country’s Prime Minister, Giuseppe Conte called for the ECB to use the full force of its economic fund. 

The £700billion package has been created to ease the impact of the virus as the ECB’s boss Christine Lagarde insisted “there are no limits” to its commitment to the Euro.

She said: “Extraordinary times require extraordinary action.

“There are no limits to our commitment to the euro.

“We are determined to use the full potential of our tools, within our mandate.”

Additional reporting by Monika Pallenberg.

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