German GDP is growing faster than expected

The German economy is doing better than expected. The federal, state, local and social security organizations showed a deficit of 139.6 billion euros.

The economy is doing well even in the pandemic.

Dhe German economy grew faster than initially assumed despite the introduction of further corona restrictions at the end of 2020. The gross domestic product (GDP) increased by 0.3 percent in the fourth quarter compared to the previous quarter, as the Federal Statistical Office announced on Wednesday. In an initial calculation, the Wiesbaden authority assumed growth of 0.1 percent.

Rising exports and the ongoing construction boom more than made up for the declines in consumption and investment at the end of the year. In the summer quarter of 2020 it was still enough to increase by 8.5 percent after the economy shrank sharply in the first half of the year due to the first wave of pandemics.

In 2020 as a whole, German economic output shrank more quickly as a result of the pandemic than it has since the financial crisis. GDP fell by 4.9 percent, the first time in eleven years. For this year, the federal government expects growth of 3 percent. However, the pre-crisis level is not expected to be reached again until mid-2022.

Last year, the German state once again spent significantly more money than it received. The federal government, states, municipalities and social security showed a deficit of 139.6 billion euros, as the Federal Statistical Office in Wiesbaden announced on Wednesday. Initial calculations by the authority, however, had shown a minus of 158.2 billion euros.