Key sector production slumped a quarter this April

Production in the industrial, construction and energy supply sectors fell by 17.9 percent in April, compared to March. According to data from the Federal Statistical Office, the decrease was at 8.9 percent in March. Compared to the period of comparison in 2019, the slump was 25.3 percent. The shrinkage of the export-dependent industry was similarly high in April, at 25.8 percent, compared to March.

An economic recovery is now expected, the Federal Ministry of Economics said. Among other sectors, the automotive industry has resumed production. Some level of recovery is also expected according to a survey by the Munich Ifo Institute. Overall, the curve should become flatter. For example, pharmaceutical manufacturers expect a slight decline in production. Expectations rose in May in metal production, the electronics industry, mechanical engineering, chemistry, and the printing industry, too. The gross domestic product should therefore not shrink as much in the second quarter as some feared, but will do so by more than 10 percent.

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