Germany’s economy is past the worst.
That at least is the official view.
The country’s economy ministry said Monday (September 14) that the trough of recession was hit in the second quarter.
It says the easing of lockdowns since May has led to a rapid recovery in industry and some service sectors.
The news follows an optimistic outlook from finance minister Olaf Scholz over the weekend:
"We still have to take a deep breath, that is clear. The pandemic is not over. But the indicators we are all looking at together show that the economy is recovering much better than what we feared some time ago. And that is something that applies to the European Union as a whole, but also to the individual member states.”
Economists expect Europe’s biggest economy to return to growth in the third quarter.
That after a record 9.7% contraction in the previous three months.
However, officials cautioned that the recovery in industrial production already seemed to have lost some momentum.
Exports also remain far from pre-crisis levels.
Earlier this month the government revised up its forecasts for the year.
It now thinks GDP will shrink by just 5.8%, not the the 6.3% in previous estimates.
But on Monday it said it would be 2022 before the economy recovered to its former size.