Latest data released by Destatis - 30 July 2020
- Prior (Q1) -2.2%; revised to -2.0%
- GDP non-seasonally adjusted -11.7% vs -10.7% y/y expected
- Prior -1.9%; revised to -1.8%
- GDP working day adjusted -11.7% vs -11.5% y/y expected
- Prior -2.3%
Slight delay in the release by the source. An unprecedented drop in German economic activity seen in the last quarter but that is expected given lockdown measures and the fallout from the virus outbreak.
If anything, one can expect not to see a repeat of this again even if the health crisis worsens in the coming months. Policymakers and lawmakers will certainly not allow that.
The reaction in the euro is rather muted and rightfully so. There isn't much to gather from the release here besides reaffirming the narrative that Q2 2020 is arguably the worst quarter on record for the global economy.
The focus is all about the pace of the recovery now and how things progress in Q3/Q4.
