The Europe’s largest, German economy has shrank dramatically by 5% in 2020, as much of economic and public life having to be shut down due to lockdowns.
The drop in gross domestic product was smaller than predicted, and less than elsewhere in Europe, but still worst than 2009 global financial crisis.
The federal statistics agency in Destatis said only the construction sector showed surge of 1.4% as industry and services saw deep declines. Financial services, information and communication, agriculture and real estate suffered a little.
The agency also mentioned during pandemic’s first wave, which evoked a national wide lockdown, resulted in the worst quarterly drop in the gross domestic product, a plunge of 9.8% in three months.
Germany’s economy did better than any other European country as it was supported by manufacturing which has taken less of a hit than services.
The European central bank forecasts favorably with predictions for Spain, France and Italy were GDP have declined by 11.1%, 9.3% and 9.0% respectively.
According to European commission the U.S had a downturn of 4.6% while China’s economy grew 2.1%.
But the economy recovered, with the stimulus package and a partial re-opening of the economy, improving by 8.5% in the third quarter, this is before slowing down again following a resurgence of Covid.
Almost all economic sectors were affected by the Coronovirus pandemic
Peter Altmaier, Germany’s Economy Minister said:
Once the pandemic is contained growth would be “clear and noticeable” in 2021. He also mentioned the second lockdown from November had less impact on the real economy than the lockdown in the early 2020.
The latest lockdown measures introduced in November till the end of January has excluded production part of Germany. Primarily the Anti-Covid steps are focused to curb infections via private sphere and service sector.
During the recent lockdowns Factories have stayed open permitting production lines to keep rolling.
