display

Germany's economy shrank by 5.0 percent in the Corona crisis in 2020.

This was announced by the Federal Statistical Office in Wiesbaden on Thursday based on preliminary calculations.

The slump is less severe than in the financial and economic crisis, when the gross domestic product (GDP) in Germany shrank by 5.7 percent in 2009.

The corona pandemic and the restrictions to limit its spread created a "deep recession," as the statisticians explained.

The pandemic therefore left clear marks in almost all economic sectors: production was in some cases severely restricted in both the service sectors and the manufacturing sector.

In contrast to the situation during the financial and economic crisis, when overall consumption supported the economy, private consumer spending declined by 6.0 percent year-on-year - more than ever before.

In contrast, government consumer spending had a stabilizing effect, with a price-adjusted increase of 3.4 percent.

According to statistics, the procurement of protective equipment and hospital services contributed to this.

14 years of sustained increase ended

display

Exports and imports of goods and services fell in 2020 for the first time since 2009, the authority said.

Adjusted for price, exports shrank by 9.9 percent and imports by 8.6 percent. 

This ended the 14-year increase in employment due to the corona pandemic, which even survived the financial and economic crisis of 2008/2009, as statisticians pointed out.

Marginally employed people and the self-employed were particularly affected.

The fight against the Corona crisis also tore a deep hole in the German treasury for the first time in years.

In 2020, the federal, state, local and social security organizations together received 158.2 billion euros less than they spent.

The sum corresponds to a deficit of 4.8 percent of the gross domestic product.

In 2019 there was a surplus for the sixth year in a row.

In the Corona crisis, however, Germany had to dig deep into its pockets in order to cushion the consequences of the lockdown measures with economic aid.

In addition, the economic crisis led to a collapse in the financial strength of the municipalities.

The Stability Council for the review of German public finances does not expect normality before 2024 because of the consequences of the pandemic.