Private consumption was particularly hard hit
The renewed restrictions on public life to combat the corona pandemic slowed the recovery of the German economy at the end of last year. The gross domestic product (GDP) grew in the fourth quarter of 2020 only minimally by 0.1 percent compared to the previous quarter, as the Federal Statistical Office announced on Friday based on preliminary data.
According to the German authorities, private consumption was particularly hard hit, while goods exports and construction investments supported the economy. In comparison to the previous year, economic output shrank by 2.9 percent after adjustment for prices.
For the year as a whole, the agency confirmed a decline in GDP of 5.0 percent. The only major slump was during the global financial crisis in 2009, when economic output fell by 5.7 percent.
In March and April 2020, parts of the German economy were virtually at a standstill as a result of the pandemic. The situation was similar in many other large economies. After an economic recovery in the summer, new restrictions on public life were introduced in the autumn.
Many economists, Europe's largest economy, are predicting a recovery this year after the deep recession in 2020. Given the lockdown that was extended until mid-February, the economy is likely to grow less strongly than initially hoped. The German government recently significantly lowered its economic forecast and is now expecting economic growth of 3.0 percent this year.
