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?
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.
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 Global
Some Financial Moves Every Salaried Millennial Needs To Make
If you are reading this title and wondering what a millennial is, do not worry. Millennials are people who are born...July 30, 2022
Putin’s War On Ukraine Crushes The Long-Awaited Russian Dream
If we look back at Russia before Vladimir Putin, Moscow was on its way to becoming a financial hub for international...July 23, 2022
IMF Considers Cutting Global Growth Outlook Significantly In The Next Review
The world’s economic situation is evident to all global citizens and it is not a good sight. From inflation to price...July 23, 2022
3 Personal Finance Advice From Billionaires
Money management is the number one stress all over America. Although there is no shortage of financial support, who would ignore...July 17, 2022
Most Executives Think They Made Wise Leadership Decisions During The Pandemic
During the pandemic, employers thought they were doing a good job supporting their employees. However, workers had contradictory opinions. According to...July 12, 2022
Shutterstock Acquires Splash Celebrity News Agency
Shutterstock has acquired paparazzi content agency Splash News, which adds 27 million editorial images to the archive, throwing down the gauntlet...July 12, 2022
Russian Prankster Duo Disguise As President Zelenesky To Make A ‘Distasteful’ Prank About J.K. Rowling
“Harry Potter” series writer and popular activist J.K. Rowling has recently become a victim of the Russian notorious prankster duo: Vovan...July 5, 2022
Queen Elizabeth Looks Elegant In Her New Hair Makeover
Queen Elizabeth has always looked fabulous in her signature short hair! Since the 2022 year was an important one for Her...July 5, 2022
Here Is The Key Strategy For Buying Bitcoin And Ethereum For Bull Markets
Investing in cryptocurrency is not a walk in the park! It’s just like any other investment that you make as it...June 27, 2022