Berlin, January 14: Germany’s economy shrank by five percent in 2020 due to COVID-19 pandemic. It is the deepest economic contraction in the European country in more than a decade. In 2009, the country’s economy shrank by 5.7 percent because of economic depression. Germany Back in Lockdown to Control 'Exponential' COVID-19 Surge; School, Non-Essential Shops to Remain Close.
The economy shrank because of COVID-19 restrictions and lockdown, which affected business in the country the most. According to a report published in Bloomberg, the German government ran a budget deficit of 4.8 percent of gross domestic product.
Notably, it is the biggest deficit since 1995. Germany is the first European country to publish full-year figures. It performed better than other European countries, including France, Italy and the United Kingdom. Economies of all Italy and France are likely to contract by nine percent, while the decline in the UK economy is over 10 percent. COVID-19 Vaccination in Germany: 265,986 People Receive Coronavirus Vaccine.
Germany managed to fare better than other European countries due to its sizable manufacturing sector and the government support to the businesses. The official figures for the fourth quarter are not able. These are likely to be published by the end of January.
The Economic will suffer a roadblock due to restricts imposed in the country after a new surge in infections and the new variants of coronavirus. The German government has extended lockdown till January end. Restaurants, hotels and non-essential retailers will remain closed until the end of this month.
(The above story first appeared on LatestLY on Jan 14, 2021 04:35 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).