A Look at the Adverse Impact of The Pandemic on Germany’s Economy
Calling 2020 a year of disappointments would be an understatement. Keeping the humungous number of deaths across the world aside, it cast a huge blow to all industries and careers. From turning regular jobs to remote jobs, shutting down markets, to crashing economies, the year was a real struggle.
Speaking of economies, among the severely impacted nations was Germany. Despite being counted as one of the world’s most stable economies, Germany too went through a rough phase like so many other countries.
According to Destatis’s data, the German economy shrank by 5% in 2020. This was very close to the 5.7% economic contraction it suffered in 2009 after the global recession hit.
Without further ado, let’s dig deeper, shall we?
Read – Why is Germany facing criticism?
What does the data say?
On January 14, 2021, Destatis, Germany’s statistics office, revealed Germany’s economic data, which showed an overall contraction by five percent. Though significant in itself, it was lower than France, Italy, and the UK who’ve reported a GDP decline of 9% and more.
The report suggested that apart from the construction sector, all other sectors witnessed a smaller decline. One of the main reasons behind an upsurge in the construction sector was the huge downfall in the related industries and services. Statistical data shows that construction had fallen by 9.7%, whereas services like cultural and sporting events had fallen by 11.3% due to extensive cancellations globally.
When 2019 and 2020 are compared in terms of growth, the statistics reveal that 2020’s growth rate has declined by 0.6%, resulting from frequent lockdowns. Moreover, 2020’s second quarter showed a huge drop of 9.8% in the economy, which later reduced to 8.2% in the third quarter.
According to Michael Kuhn, head of the GDP and output cancellation group at Destatis, the agency couldn’t gather adequate data for December 2020 due to lockdowns, so it was difficult for him to comment on it. He requested people to be patient and concluded by saying that the official data will be released by January 29, 2021.
Read – What are the new lockdown rules in Germany?
A ray of hope – German sectors that have shown progress
According to economists, though the retail and industrial sectors have shown a slower growth rate, the manufacturing sector has shown a lot of improvement in the last few months. And the credit for this goes to factories that can adapt to changing work norms better than other businesses. Economists believe that the manufacturing sector can improve the current economic condition as it makes up to a fifth of total economic output.
Summing it up
According to Chancellor Angela Merkel, Germany might be under a lockdown for a few more weeks to control the spread of the new Coronavirus strand. The whole world is suffering from the disease and everyone is praying for a better and safer tomorrow. But it can only happen when we stand in unity, following restrictions and safety practices, and fight this virus.
More in Business
-
`
How Do Bail Bondsmen Make Money? Here’s Everything You Need to Know
Have you ever wondered, how do bail bondsmen make money? Well, it is an interesting question that dives into the heart...
June 19, 2024 -
`
APY vs. Interest Rate – A Comprehensive Comparison
When it comes to your hard-earned money, every detail matters, especially when considering interest-bearing bank accounts. You’ve likely encountered the terms...
June 13, 2024 -
`
Why the Secret Ballot is Paramount in American Elections
In the heart of democratic processes, the secret ballot emerges not only as a method but as a fundamental right that...
June 7, 2024 -
`
Everything You Need to Know About Jeff Bezos Fiance, Lauren Sánchez
In May 2023, the world learned that Jeff Bezos, the founder of Amazon, had taken a significant step in his personal...
May 30, 2024 -
`
What Can I Do With a Business Degree? Here Are Your Options
A business degree is one of the most versatile academic credentials you can achieve, opening doors to various career paths across...
May 25, 2024 -
`
Cardi B Before and After Her Plastic Surgery Procedures
Belcalis Marlenis Cephus, known professionally as Cardi B, is a renowned American rapper. She has captivated audiences not only with her...
May 19, 2024 -
`
What Is a Good Crypto Portfolio? The Ultimate Guide to Creating a Well-Balanced Crypto Portfolio
What is a good crypto portfolio? Investors face a unique set of challenges compared to traditional stock market investments. The volatility...
May 12, 2024 -
`
Benefits of Scaling Up Private Capital
Private capital refers to privately-owned funds that are not subjected to government scrutiny or regulations. Private capital is raised through individual...
May 1, 2024 -
`
What Is Financial Trauma?
Financial trauma refers to the psychological and emotional distress individuals experience due to significant financial difficulties or traumatic financial events. It...
April 26, 2024
You must be logged in to post a comment Login