Federal Statistical Office, the German economy announced a 5 percent decline in 2020. The economic downturn was below analysts’ expectations. Germany’s gross domestic product fell 5.7 percent in 2009, the year of the latest financial and economic crisis. Germany’s gross domestic product increased by 0.6 percent in 2019.
A statement from the Federal Statistical Office in Wiesbaden said measures taken to prevent the spread of the coronavirus pandemic were causing a “deep economic downturn (recession).” The statement said that the pandemic has affected all economic sectors, the economic contraction was highlighted in the service sector and manufacturing. Pandemic restrictions are said to have negatively affected economic sectors such as airlines, tourism, gastronomy and fairs.
Consumer spending has decreased
Unlike the financial and economic crisis of 2009, during this crisis, total consumption did not support the economy, and private consumption expenditures actually decreased by 6 percent compared to the previous year. The state’s consumer spending in real terms increased by 3.4 percent and stabilized. Procurement of protective equipment and hospital services also said it helped.
The Federal Bureau of Statistics said last year that exports and imports of goods and services fell for the first time since 2009. Exports decreased by 9.9 percent in real terms, and imports by 8.6 percent.
The statement said that the increase in employment, which lasted more than 14 years, ended due to the corona pandemic. The groups most affected by the crisis were the unemployed and freelancers.
Although economists expect economic growth of 3.5 percent or higher in 2021, they say the growth rate will be crucial in easing vaccination efforts and easing epidemic constraints.