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The German economy is expected to suffer a severe contraction in the second quarter despite the measures taken to ease coronavirus-related restrictions, Germany’s Bundesbank said in its monthly report.

“Despite the easing measures that have been introduced, social and economic life in Germany is still very far from what was previously considered normal,” the official statement read, per Reuters. “The available economic indicators paint a correspondingly bleak picture.”

After the first quarter GDP came in at -2.2% on a quarterly basis, Bundesbank said the second-quarter reading is likely to be much worse. 

Market reaction

Germany’s DAX 30 Index largely ignored this statement and was last seen gaining 2.73% on a daily basis at 10,750 points.