News24
14 Jan 2021, 16:12 GMT+10
Germany's economy in 2020 suffered its biggest contraction since the 2009 financial crash, hit hard by the coronavirus pandemic, official data showed on Thursday.
Output shrank 5.0% year-on-year, as "almost all economic sectors were markedly affected by the corona pandemic", federal statistics agency Destatis said.
However the data betters the government's own forecasts, which anticipated a decline of 5.5%.
The downturn comes after a "10-year growth period", Destatis said.
In 2009, in the midst of the financial crash, gross domestic product (GDP) plunged 5.7%.
READ HERE | The EU has access to up to 300 million extra Pfizer doses
The first wave of the pandemic caused the worst quarterly drop in GDP on record, when output plummeted 9.8% in the three months to June.
But the economy recovered, expanding 8.5% in the third quarter, before slowing down again on a resurgence of the virus in the autumn.
Manufacturing, which accounts for about a quarter of the economy, suffered particularly, along with the services sector, Destatis said.
Online trade improved as physical retail trade declined substantially, the agency said, while restrictions closing hotels, restaurants and bars led to a dramatic decline in hospitality.
READ | WHO convenes emergency committee early over coronavirus variants
Like its neighbours, the country of 83 million people has been hit hard by a resurgence in coronavirus cases, prompting the shuttering of bars, gyms, cultural and leisure centres in November, followed by non-essential shops in December.
But unlike during the first wave in the spring, the latest restrictions do not close Germany's export-oriented factories or manufacturing businesses, meaning they have had less impact on the economy than earlier in the year.
Industrial orders jumped 2.3% in November month-on-month, Destatis data show, while manufacturing production rose 0.9%.
ALSO READ | Philippines detects first case of British virus strain
Both indicators have been rising for several months, buoyed by a recovery in demand from China where the virus has been largely contained.
"The German economy was less affected by the second round of restrictions than by the first," Georg Thiel, president of Destatis said.
"As we have had a lockdown again since November, this result must also be seen as a positive surprise," Uwe Burkert, head economist at LBBW, said.
However, a difficult period remains for Europe's largest economy, after German Health Minister Jens Spahn told parliament on Wednesday the current shutdowns would probably be extended into February.
Chancellor Angela Merkel has warned that the country faces "tough weeks" until Easter in early April.
Get a daily dose of Massachusetts Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Massachusetts Sun.
More InformationCONCORD, New Hampshire: A federal judge in New Hampshire issued a crucial ruling on July 10 against President Donald Trump's executive...
DUBAI, U.A.E.: A cargo ship flagged under Liberia, known as the Eternity C, sank in the Red Sea following an attack executed by Yemen's...
WASHINGTON, D.C.: The Trump administration has started sending some weapons to Ukraine again, just a week after the Pentagon told officials...
ECAULT BEACH, France: On clear days, the white cliffs of the United Kingdom, are visible from northern France, where men, women, and...
ATLANTA, Georgia: The United States is facing its worst measles outbreak in more than three decades, with 1,288 confirmed cases so...
In the past month alone, 23 Israeli soldiers have been killed in Gaza—three more than the number of remaining living hostages held...
WASHINGTON, D.C.: Filmmaker Peter Jackson's lifelong fascination with the extinct giant New Zealand flightless bird called the moa...
NEW DELHI, India: India has submitted a revised proposal to the World Trade Organization (WTO) in Geneva to implement retaliatory tariffs...
SAN FRANCISCO, California: Nvidia, the Silicon Valley chipmaker at the heart of the artificial intelligence boom, this week briefly...
REDMOND, Washington: Artificial intelligence is transforming Microsoft's bottom line. The company saved over US$500 million last year...
WASHINGTON, D.C.: A federal rule designed to make it easier for Americans to cancel subscriptions has been blocked by a U.S. appeals...
BASTROP, Texas: In a surprising turn at Elon Musk's X platform, CEO Linda Yaccarino announced she is stepping down, just months after...