Britain is celebrating a full economic recovery from a pandemic, but Germany is drowning in sadness in the story that it could fall into recession again.
Britain celebrated a complete recovery from the pandemic, but Germany was drowned in the story of a possible recession again.
Unlike the UK, Europe’s largest economy shrank by up to 1 percent in the last three months of 2021 due to severe coronavirus restrictions and supply chain disruptions.
Germany’s gross domestic product (GDP) rose 2.7% last year, according to data from the National Bureau of Statistics (FSO). However, it was still 2 percent below the pre-pandemic level. Analysts estimated that GDP fell between 0.5% and 1% in the fourth quarter.
At stake: Unlike the UK, Europe’s largest economy shrank by up to 1% in the last three months of 2021
The situation in which Deutsche Bank predicts that Germany’s GDP will fall by about 0.5% in the first quarter of 2022 will push the country into recession again is very bad.
In 2020, Germany’s GDP fell by 4.6% as the pandemic caused the biggest recession since World War II.
Meanwhile, UK GDP rose to pre-pandemic levels for the first time after a 0.9% increase in November.
FSO Governor Georg Tyr said, “Germany has recovered from last year’s sharp downturn, despite continued pandemics, increasing delivery bottlenecks and shortages of materials, but economic performance is at stake. It has not reached the previous level. ”
The country’s vast manufacturing industry has been constrained by supply chain disruptions that have robbed key materials and components such as semiconductors and computer chips used in everything from automobiles to mobile phones.
Private sector consumption also stagnated during the year, despite improvements in the labor market, as inflation squeezed the amount of disposable income for German consumers.
Germany’s GDP is still smaller than it was before Covid attacked
Source link Germany’s GDP is still smaller than it was before Covid attacked