Despite the recovery of the German economy in 2021, the country failed to return to pre-pandemic levels, as shortages of semiconductors hit production in the automotive industry and further coronavirus restrictions slowed the growth of Europe’s largest economy.
In particular, Germany’s GDP grew by 2.7% in 2021, after a “dip” of 4.6% recorded in the first year of the coronavirus crisis, according to preliminary data released earlier by the Federal Statistical Office.
The estimate was in line with economists’ forecasts in a Reuters poll.
This practically means that economic production in Germany is still 2% lower than the pre-crisis level of 2019, according to the Statistical Office.
The fourth largest economy in the world shrank in the last three months of 2021, after the growth recorded in the previous two quarters, as the increase in coronavirus cases led to the adoption of new restrictive measures in the retail trade and hospitality sector, according to the Federation. Statistical Service.
A first estimate for the country’s GDP in the fourth quarter of last year shows a shrinkage of the German economy between 0.5% and 1%, according to a spokesman for the agency.
The main growth factors for the German economy last year were the “jump” in exports and the huge public spending to mitigate the impact of the pandemic, according to the Statistical Service.
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Source From: Capital
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