According to official German data released by the Destatis Statistical Institute, Thursday, January 14, 2021, Germany’s Gross Domestic Product (GDP) fell by 5% in 2020, the biggest drop experienced by the country since the economic crisis of 2009.
Forecasts estimate German GDP to fall 5% in 2020
According to provisional estimates from the Destatis Statistical Institute, published on Thursday, January 14, 2021, German GDP in 2020 experienced its sharpest decline since the 2009 crisis. Thus, the health crisis had a strong impact on the German economy. which sees its GDP decline by 5% in 2020. The Institute specifies that “ the German economy has entered a deep recession after a decade of growth “.
If the fall is strong, the forecasts of the Destatis Institute are more positive than those advanced by the German government. The latter estimated that the fall in GDP would be 5.5% in 2020. If it remains strong, and is the strongest decline recorded for eleven years, the decline in German GDP in 2020 remains less severe than that suffered by the country in 2009 with the economic crisis (-5.7% of GDP).
Another economic slowdown in December 2020
Like almost all countries in the world, German economic activity has been severely slowed down by the health crisis. In the second quarter of 2020, its GDP fell by 9.8%, before enjoying a gradual recovery in the third and fourth quarters of 2020. However, the resumption of the pandemic forced the country to put a stop to this return of activity by declaring the implementation of a partial curfew in December, as well as the closure of stores considered non-essential.
The president of the Destatis Institute for Statistics, Lars Feld told the German newspaper Handelsblatt his forecast for 2021. “ If in February or March, we lighten the restrictions a little, we will have strong growth in the second quarter like this summer “.
Our German neighbor is doing better than France, which according to INSEE suffered from a GDP decline of 9% in 2020, almost double that of Germany. However, INSEE forecasts a 6% recovery by the end of June 2021.