According to Germany's Federal Statistics Office, capital investments dropped 6.9 percent, followed by private consumption which contracted 3.2 percent and exports which went down 3.1 percent. This data implies that private consumption contracted 1.7 percent while net trade went down by 0.8 percent.
The data shows how much the COVID-19 pandemic has affected the German economic performance since the data implies that the economy contracted 2.2 percent during the first quarter, pushing Germany into a recession. At the moment, there are 180,328 infected individuals in Germany as well as a death toll of 8,371.
The German State of Thuringia recently announced that it will lift the restrictions, which is signaling a crisis of leadership in the country. The First Minister of Thuringia announced that he would end the restrictions by June 6, which means that the population wouldn't need to keep social distance measures or wearing masks. The announcement was heavily criticized by the German political establishment.
Meanwhile, in France, the finance ministry announced that the fiscal measures the government implemented to push up the french economy in light of the advance of the coronavirus epidemic, which has infected 182,584 individuals and has killed about 28,367, have costed the equivalent of 20 percent of France's GDP.
“If we take everything that has been done with the budget and in support of businesses’ cashflows, it’s 450 billion euros, 20% of the nation’s wealth on the table,” commented France's Finance Minister Bruno Le Maire, adding that President Emmanuel Macron will announce "strong measures" that would favor the automotive industry.
By 8:04 GMT the Euro went down 0.21 percent against the US dollar, falling to the 1.0877 level. Conversely, it dropped 0.08 percent against the Japanese Yen, falling to the 117.17 level, and fell 0.15 percent against the Pound Sterling, falling to the 0.8938 level. On the other hand, the Euro advanced 0.01 percent against the Swiss Franc, hitting the 1.0585 level.
Japan to Lift Restrictions in All The Remaining Prefectures
Japan's Economy Minister, Yasutoshi Nishimura said that the government is considering lifting the state of emergency in all the remaining regions, including the city of Tokyo, which will be monitored together with Kanagawa and Hokkaido prefectures.
“While the emergency state will be lifted, it is important to expand economic activity in stages as we establish a new way of living,” he told reporters.
Nikkei newspaper claimed that the Japanese government is also considering a fresh stimulus package worth $930 billion, which would drive up public spending to 40 percent. According to the report the government would approve his new budget on Wednesday, at a cabinet meeting.
By 8:20 GMT the US dollar went up by 0.12 percent against the Japanese Yen, hitting the 107.74 level.