The German economy contracted by a record 9.7% in the second quarter.
Data released Tuesday (August 25) showed consumer spending, investment and exports all collapsed.
The fall was much stronger than during the financial crisis, and the sharpest decline since records began 50 years ago.
Consumer spending was down just under 11%, while both capital investments and exports fell by around a fifth.
With construction activity also down, the only bright spot was state consumption.
That rose 1.5% on the quarter due to the government's virus rescue programs.
Earlier this year, Germany's parliament suspended the country's so-called debt brake to finance the crisis response with a record new debt of 217.8 billion euros - or $256 billion.
Europe's largest economy - more used to balanced budgets and fiscal prudence - recorded a deficit of $61 billion for the first six months of the year.
Though employment only edged down 1.3% on the year - a sign efforts to protect the labor market have paid off.
Looking ahead, the German central bank expects household spending to drive a strong recovery in the third quarter.
Business sentiment is also up in August, according to the Ifo Institute.
It said the German economy is quote 'on the road to recovery'.
Its business climate index rose to 92.6 from a downwardly revised 90.4 in July.
This was the fourth monthly increase in a row and came in better than expectations for 92.2.