German economy largely stagnated in final quarter of 2020

Berlin (dpa) – Despite a coronavirus lockdown, the German economy grew by 0.1 per cent in the fourth quarter of 2020 compared to the previous three-month period, the Federal Statistical Office said on Friday.

Economists had broadly predicted that the economy would stagnate.

Germany has been in recovery since the second quarter, when gross domestic product plunged by a historic 9.7 per cent, before rebounding by 8.5 per cent in the third quarter.

However, the country reintroduced sweeping restrictions on public and economic life in November, which were then intensified the following month, putting the brakes on the economic recovery.

These measures took a particularly hard toll on consumer spending while exports and construction investments buoyed the economy, according to Destatis.

Economic output declined by 2.9 per cent in the fourth quarter year on year in price-adjusted terms, the agency said.

The resulting GDP decline was 5 per cent for the year 2020 as a whole.