As Britain gained power, Germany’s powers were hit by Covid’s fourth wave: the EU’s largest economy fell to growth of only 1.7%
Germany’s recovery was beginning to be at a loss, even before the fourth wave of Covid swallowed Europe, figures said.
The EU’s largest economy grew by only 1.7% from July to September. According to the Federal Bureau of Statistics Destatis, it is below the initial estimate of 1.8%, indicating a tough year for Olaf Scholz’s new government.
The slowdown in Germany’s rebound meant that its economy was still 1.1% smaller in the third quarter of this year than it was before the pandemic, heading in the opposite direction of the growing optimism of Britain.
The slowdown in Germany’s rebound meant that the economy in the third quarter was 1.1% smaller than it was before the pandemic and was heading in the opposite direction of the UK.
The rapid deployment of vaccinations in the UK, including booster jabs for the most vulnerable people, has helped the country return to relatively normal, but much of Europe is currently struggling to control spiral cases. ..
Experts say Prime Minister Scholz will come in fear that growth will stop in the last three months of 2021 as the government is forced to re-impose pandemic restrictions. I think it’s even worse.
As another sign of German depression, consumer confidence declined in November, raising households concerned about an increase in Covid cases and a surge in inflation.
This was in stark contrast to the UK, where production appears to be sluggish despite inflationary concerns and supply chain disruptions due to pandemics.
Numbers earlier this week show that the UK factory is booming and that the production order book has been at its highest level since the record began in 1977, when James Callaghan was Prime Minister.
According to data analyst GfK, British shoppers gained confidence in November, and consumer optimism is “good news for retailers for Black Friday and Christmas.” ..
But in Germany, GfK numbers show that household confidence is declining.
Arian Curtis, Global Economist at Capital Economics, said:
This “especially applies to Germany,” she added. As the service sector, which covers restaurants and retail, weakens, the problems already faced by the economy due to supply chain disruptions in car manufacturing increase.
Curtis said: “In contrast, recent data from the UK suggest that the economy is relatively well maintained despite continued supply shortages.”
Economists expect the UK to grow 0.8% in the final quarter of 2021, but many believe Germany may stagnate or even shrink its production again.
This vulnerability will cause headaches to the new coalition government of the country formed this week, hoping to find funding to boost investment in technology and green energy.
Ricardo Amaro, Senior Economist at Oxford Economics, said: Tightening some public health regulations is expected to affect economic activity.
He said the reduction in activity in the last three months of 2021 is “more and more plausible.”
Germany’s great powers were hit by the fourth wave of Covid as the British economy boomed.
Source link Germany’s great powers were hit by the fourth wave of Covid as the British economy boomed.