Europe has revealed the economic results for the second quarter which turned out to be shocking. The largest economies of the region have had a knock-down blow from the coronavirus which put an end to talks about a quick recovery and a return to a normal way of living. The Federal Statistical Office (Destatis) announced that Germany’s GDP dropped by 10.1% in the second quarter and by 11.7% year-on year. This had been the deepest economic contraction since 1970. Before that, the record was considered a decline of 4.7% in 2009 immediately after the economic crisis. "In the second quarter of 2020 a massive slump was recorded for exports and imports of goods and services as well as for household final consumption expenditure and capital formation in machinery and equipment. General government, however, raised its final consumption expenditure during the crisis," Destatis reported. Italy comes next. The country’s gross domestic product shrank by 12.4% in the second quarter and by 17.3% year-on-year. Italy’s economy has been knocked back to the level of a quarter century ago. Neighboring Spain plunged into its deepest recession amid the coronavirus pandemic. Thus, Spain’s GDP plummeted by 18.5%, the worst reading in the EU. In addition, both countries rely on tourism. However, this year they can definitely forget about tourists. According to economist Maeva Kuzin, Spain suffered from a deeper shock than Germany or Italy because Spain had to impose more severe restrictions than any other European country. Above all, Spanish households are highly dependent on the tourism industry.
