BERLIN (Reuters) – Strong exports helped Germany eke out 0.1% development within the closing quarter of final 12 months, staving off contraction regardless of a second wave of the brand new coronavirus slamming the brakes on consumption in Europe’s largest financial system, the Federal Statistics Workplace stated.
Items exports and development supported the financial system whereas a renewed lockdown on the finish of final 12 months hit personal consumption, the Workplace stated on Friday. A Reuters ballot had pointed to 0.0% fourth-quarter development.
Within the third quarter, the financial system grew 8.5%.
“In This autumn, this restoration was slowed by the second coronavirus wave and the renewed lockdown on the finish of the 12 months,” the Statistics Workplace stated.
“This notably affected personal consumption, whereas items exports and development investments supported the financial system.”
The German authorities on Wednesday slashed its development forecast for Europe’s largest financial system to three% this 12 months, a pointy revision from final autumn’s estimate of 4.4%, brought on by a second coronavirus lockdown.
Presenting the revised forecast, Economic system Minister Peter Altmaier stated he anticipated the upswing to proceed in 2022 and for the financial system to regain its pre-crisis stage within the second half of subsequent 12 months.
Germany suffered its second-biggest financial plunge in post-war historical past final 12 months.
Chancellor Angela Merkel and state leaders agreed final week to increase the newest lockdown till mid-February as Germany, as soon as a task mannequin for preventing the pandemic, struggles with a second wave and report each day numbers of COVID-19 deaths.
The financial system shrank by a smaller-than-expected 5% final 12 months. That was surpassed within the post-war period solely by the report -5.7% in 2009, through the monetary disaster.
A survey revealed on Monday confirmed German enterprise morale slumped to a six-month low in January because the second wave of COVID-19 halted an financial restoration.
(Reporting by Paul Carrel; enhancing by Thomas Seythal)
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