The German Economy in 2020 Fell the Hardest Since the Global Financial Crisis

The German economy fell in the pandemic year 2020 the strongest since the great financial crisis that shook the world more than 10 years ago, data published by the German statistical office Destatis on Friday show.

Real gross domestic product (GDP) fell five percent last year, Destatis reported. According to calendar-adjusted data, it was down 5.3 percent since last year was a leap year.

In the last three months of 2020, Europe’s largest economy has almost stagnated, growing by only 0.1 percent compared to the previous three months, when activity jumped 8.5 percent. In the second quarter, GDP recorded a history of decline, by 9.7 percent.

“The recovery process from October to December slowed down, however, thanks to a second wave of coronavirus and a new lockdown that was introduced later this year,” Destatis said in a statement.

The second wave of the pandemic and measures to combat it have hit personal consumption particularly hard, with support for the economy provided by merchandise exports and gross fixed capital formation in construction, they note.

On an annualized basis, economic activity fell 2.9 percent in the fourth quarter of last year, after a 3.9 percent decline in the previous three months. Calendar-adjusted data show a 3.9 percent drop, after a 4.0 percent drop between July and September.

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