German imports and exports took a huge hit in April, revealing a record plunge since 1990 after the COVID-19 pandemic severely disrupted demand and supply. The data on Tuesday added to the bleak outlook for the biggest economy in Europe.
Many had previously speculated that the pandemic would lead the German economy into its biggest drop since post-World War Two in the second quarter.
The Federal Statistics Office said that seasonally adjusted exports plunged by 24% on April while imports declined by 16.5%. In addition, trade surplus contracted to €3.2 billion.
Economist at Bankhaus Lampe, Alexander Krueger said that a recovery could already be in progress after the government started to ease lockdown measures. However, very little remain from the country’s export boom from the previous decade.
Economists are expecting a slow recovery for Germany, with the pace depending on how fast its European neighbors and major trade partners like the U.S. and China would emerge from the pandemic.