By comparison, both Germany and France entered the crisis sparked by coronavirus with already weakened economies against other COVID-19 affected countries.The French economy shrank by six per cent in the first three months of this year, which was its worst performance since 1945. Germany’s economy is set to shrink by ten per cent in the three months leading to June, according to the country’s research institutes.
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By comparison, both Germany and France entered the crisis sparked by coronavirus with already weakened economies against other COVID-19 affected countries.
The French economy shrank by six per cent in the first three months of this year, which was its worst performance since 1945.
Germany’s economy is set to shrink by ten per cent in the three months leading to June, according to the country’s research institutes.
Germany and France are bracing for a recession after the coronavirus (Image: GETTY )
Countries in the EU have not reached a solution to the crisis (Image: GETTY )
The lockdowns both countries have implemented have brought large sectors of the economy to a standstill.
This comes as a marathon meeting between European leaders this week did not reach an agreement on how to help the eurozone cope with the crisis.
The chief economist of the Organisation for Economic Co-operation and Development (OECD), Laurence Boone, told France Inter radio on Wednesday that every month the country is in lockdown for would lead to a two per cent decline in annual GDP.
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Macron is likely to extend the lockdown in France (Image: GETTY )
She said: “We have production levels dropping on the order of 25 to 30 percent across all of the countries.”
Germany’s leading research companies have said in a report: “The corona pandemic will trigger a serious recession in Germany”.
France’s central bank has revealed that for every week the country has been in lockdown, business activity has dropped by a third.
World merchandise trade is set to plummet by a third because of the crisis.
The World Trade Organisation’s director-general Roberto Azevedo has said: “These numbers are ugly – there is no getting around that.
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More than 10,000 people have died from coronavirus in France (Image: GETTY )
“The unavoidable declines in trade and output will have painful consequences for households and businesses, on top of the human suffering caused by the disease itself.”
The government in Switzerland has warned that its economy would fall ten per cent this year.
Billions of pounds have been poured into the economy as governments attempt to salvage the situation.
Philippe Martin, economics professor at Sciences Po in Paris, said: “In Europe right now we are doing a huge fiscal stimulus . . . as GDP is collapsing, incomes are stabilised.
“Right now those incomes are being saved so saving rates are skyrocketing in Germany, France, Spain. The question is what do we do with that once the crisis ends? It is very uncertain.”
A recession is defined as two consecutive quarters of economic shrinking.