22.06.202013:06:00UTC+00German GDP To Fall Sharply In Q2, Bundesbank Says

The German economy is set to contract significantly in the current quarter and much more than the rate reported in the first quarter, Bundesbank said in its monthly report released Monday.

According to central bank, gross domestic product will fall around 10 percent in the second quarter.

The largest euro area economy had contracted 2.2 percent in the first quarter, which was the biggest fall since the first quarter of 2009 and the second largest since the German unification.

The economic stimulus package announced by the government should boost the recovery but it will hardly have any effect in the second quarter, the bank said.

The package has helped to lift sentiment among businesses and consumers, the bank noted.