Germany once again confirmed its title of Europe’s most stable economy. Like all other countries in the world, Germany faced the coronavirus pandemic. As a result, the local economy suffered from the sharpest economic slump since the 2008 financial crisis. Germany's GDP shrank by 2.2 percent year-on-year in the three months to March. However, the situation is not as dismal as in the neighboring states. France's economy contracted by 5.8 percent in the first quarter, Italy’s economy - by 4.7 percent, Spain’s economy - by 5.2 percent, and Belgium’s one - by 3.9 percent. In general, Germany is doing well. Moreover, over the past few years, Berlin has accumulated record-high financial reserves in order to cushion a possible economic downturn. Its debt-to-gross domestic product ratio amounts to approximately 62 percent, while that of France is 98 percent. Germany's responsible and rational approach to savings provided its residents with the most extensive social welfare program accounting for 30 percent of the gross domestic product. By comparison, Spain's social spending is only 12 percent. Of course, Germany, like other countries, is expected to be hurt by both unemployment and an economic slowdown, or even a crisis. Nevertheless, it is likely to reel from all these challenges faster than others.
