* * *  1 The German economy Ladies and gentlemen I am delighted to have this opportunity to exchange my views with you today. Allow me to first make a few brief remarks about the economic situation in Germany and the euro area, monetary policy and the longer-term challenges facing the euro area before I take your questions.
We have had serious exogenous shocks in the first quarter — the Taal volcano eruption, USChina trade tensions, African swine fever. But nothing comes close to the COVID-19 pandemic that has brought the global economy to a halt. The confluence of these shocks resulted in the contraction of the economy by 0.2 percent in the first quarter of 2020.