Over the past several months, high inflation and energy prices, bottlenecks in supply while both exports and domestic consumption decline have "cast a dark shadow" on the German economy and caused other fluctuations with the size of the economy. common law of economic development.
| If the recession continues, the German economy will fall into a real crisis. (Source: Euractiv) |
Germany has officially entered a technical recession after data showed Europe's largest economy shrank for two consecutive quarters.
Germany's gross domestic product (GDP) in the first quarter of this year continued to decline by 0,3%, after having recorded a decrease of 0,2% in the last quarter of last year.
The all-round impacts from the Covid-19 pandemic and then the conflict in Ukraine are pushing the German economy to the brink of a serious crisis.
If the recession continues, Germany will fall into a real economic crisis. At that time, unemployment and default rates will increase, goods stagnate, production stagnates, the stock market and banks collapse… All will create a nightmare scenario for the economy. European ships.
Therefore, the most important task of the German government at this time is to prevent the economy from continuing to slide into recession and take steps to control it to gradually exit the technical recession as soon as possible.
The government can immediately use the tools available now, which are bailouts for companies and people through tax cuts and subsidies, as the German government did when dealing with the aftermath of the energy crisis a few months ago.
