Despite 2.7% growth in 2021, the German economy has not reached pre-pandemic levels


Berlin — The German economy will be pre-pandemic size in 2021 as the shortage of microchips has hit production in the automotive industry and COVID-19 regulations have delayed the recovery of Europe’s largest economy in the last few months of this year. Could not return to.

Gross domestic product rose 2.7% in 2021 after plunging 4.6% in the first coronavirus crisis in 2020, Federal Statistics Bureau preliminary figures said Friday.

Numbers consistent with analysts’ predictions in a Reuters poll mean that Germany’s economic output was still about two percent below pre-crisis 2019 levels, the agency said.

The world’s fourth-largest economy shrank in the last three months of 2021 after growing in the previous two quarters as the recurrence of the colonavirus infection led to new restrictions on retail and hospitality. Said the agency.

According to a spokeswoman, initial estimates showed a quarterly reduction of 0.5% to 1.0% in the fourth quarter.

The main growth drivers for 2021 were a surge in exports and huge public spending to mitigate the effects of the pandemic.

However, the development and domestic production of the COVID-19 vaccine by German startup BioNTech has also boosted growth, a spokesman for the Statistics Bureau said without quantifying the impact.

Germany reached a record € 215 billion ($ 24.87 billion) in net new borrowings last year after achieving an unprecedented total of € 130 billion in 2020 to fund the fight against COVID-19. Increased to.

The public sector deficit at all state levels increased to € 153.9 billion, or 4.3 percent of economic output.

The Ministry of Economy said in a monthly report that the ongoing supply bottleneck of key commodities in manufacturing is likely to continue for some time.

Most economists will shrink again in the first three months of 2022 after the German economy shrinks in the first two quarters of 2020, driving into another technological recession defined as the second consecutive quarter of shrinkage. I expect it.

($ 1 = 0.8744 euros)

By Michael Nienaber and Miranda Murray

Reuters

follow

Posted on