• Latest
  • Trending

German economy shrank by just 5% in 2020 amid Covid-19 | Germany

Gates Cambridge Scholarship celebrates 20th anniversary

Gates Cambridge Scholarship celebrates 20th anniversary

Israel-Gaza conflict rages as US envoy visits

Israel-Gaza conflict rages as US envoy visits

Police and Crime Commissioner to end funding for heroin addiction treatment scheme

Police and Crime Commissioner to end funding for heroin addiction treatment scheme

News Press Live
  • Home
  • News
    • All
    • Crime
    • Economy
    • News of England
    • News of Northern Ireland
    • News of Scotland
    • News of Wales
    Gates Cambridge Scholarship celebrates 20th anniversary

    Gates Cambridge Scholarship celebrates 20th anniversary

    Israel-Gaza conflict rages as US envoy visits

    Israel-Gaza conflict rages as US envoy visits

    Police and Crime Commissioner to end funding for heroin addiction treatment scheme

    Police and Crime Commissioner to end funding for heroin addiction treatment scheme

    Nicola Sturgeon’s own economic adviser warns Indyref2 puts recovery at risk

    Nicola Sturgeon’s own economic adviser warns Indyref2 puts recovery at risk

    Horse Racing Getting back on track

    Rochdale hopes machine centre will manufacture revival in fortunes

    The sad state of Cardiff city centre after a year of lockdown as shops lose fight to hold on

    The sad state of Cardiff city centre after a year of lockdown as shops lose fight to hold on

    Convoy drives through London shouting  the Jews, rape their daughters’

    Convoy drives through London shouting the Jews, rape their daughters’

    Conflict intensifies in Gaza as Israeli strikes destroy Gaza tower housing

    Trending Tags

      • Crime
      • Economy
      • News of England
      • News of Northern Ireland
      • News of Scotland
    • Royal Family
    • Tv & Showbiz
    • World News
    • JOBS
    • Sport
      • Football
      • Watch Live Score Football (Soccer) Videos
    • Login
    • Register
    • Latest Headlines
    • Advertise With Us
    • Find A Job
    Sunday, February 5, 2023
    Watch Live Sport
    • Home
    • News
      • All
      • Crime
      • Economy
      • News of England
      • News of Northern Ireland
      • News of Scotland
      • News of Wales
      Gates Cambridge Scholarship celebrates 20th anniversary

      Gates Cambridge Scholarship celebrates 20th anniversary

      Israel-Gaza conflict rages as US envoy visits

      Israel-Gaza conflict rages as US envoy visits

      Police and Crime Commissioner to end funding for heroin addiction treatment scheme

      Police and Crime Commissioner to end funding for heroin addiction treatment scheme

      Nicola Sturgeon’s own economic adviser warns Indyref2 puts recovery at risk

      Nicola Sturgeon’s own economic adviser warns Indyref2 puts recovery at risk

      Horse Racing Getting back on track

      Rochdale hopes machine centre will manufacture revival in fortunes

      The sad state of Cardiff city centre after a year of lockdown as shops lose fight to hold on

      The sad state of Cardiff city centre after a year of lockdown as shops lose fight to hold on

      Convoy drives through London shouting  the Jews, rape their daughters’

      Convoy drives through London shouting the Jews, rape their daughters’

      Conflict intensifies in Gaza as Israeli strikes destroy Gaza tower housing

      Trending Tags

        • Crime
        • Economy
        • News of England
        • News of Northern Ireland
        • News of Scotland
      • Royal Family
      • Tv & Showbiz
      • World News
      • JOBS
      • Sport
        • Football
        • Watch Live Score Football (Soccer) Videos
      No Result
      View All Result
      News Press Live
      No Result
      View All Result

      German economy shrank by just 5% in 2020 amid Covid-19 | Germany

      15.4k
      VIEWS
      Share on FacebookShare on Twitter

      Germany’s economy shrank by 5% last year, according to official figures, among the smallest declines anticipated in Europe despite the coronavirus pandemic causing the deepest recession since the 2008 financial crisis.

      The German recession is expected to be among the least severe in Europe, with analysts crediting a decisive fiscal response and the avoidance of overly optimistic forecasts. By comparison, national output is expected to drop by more than 9% in Italy and France, and by 11.3% in the UK – the worst performance for more than 300 years.

      Analysts said the composition of Germany’s economy helped it record a stronger performance than many close neighbours, its bigger manufacturing and exporting base able to continue operating with fewer disruptions than the service-sector heavy economy of the UK.

      Industrial production accounts for more than a quarter of the German economy, compared with about a tenth of the UK economy. In the UK, social consumption – face-to-face spending on goods, services and activities which suffer more from physical-distancing restrictions – is higher than in other major economies, Bank of England figures show.

      The German national statistics office said Germany’s gross domestic product (GDP) fell 5% in 2020, compared with the previous year, as the pandemic ended a 10-year growth period with a decline similar to the one caused by the financial crisis in 2008-09. However, the recession caused by Covid was less severe, according to the provisional estimates. German GDP fell by 5.7% in 2009.

      Tomas Dvorak, an economist at the consultancy Oxford Economics, said the UK was particularly hard hit during the first wave of the coronavirus crisis. The delayed introduction of lockdown necessitated tougher restrictions that then remained in place for longer than other countries, causing a more severe downturn, he said. UK GDP fell by 19% in the second quarter of 2020 – among the worst performances in the developed world.

      Comparing the two countries further, Dvorak said: “Germany has also been more decisive with its fiscal response, even if the overall size of the stimulus wasn’t massive, and they avoided the ‘cliff-edges’ of giving overlyoptimistic deadlines for withdrawal of the furlough scheme.”

      Germany’s emergency response to the crisis, offering tax cuts and pumping billions of euros in additional spending into Europe’s largest economy, accounted for about 4.3% of its €3.3tn (£2.9tn) economy, according to Andrew Kenningham, the chief Europe economist at the consultancy Capital Economics. This compares with support worth 12.4% of the UK’s £2.2tn economy. “Of course, Germany has not needed to provide as much support because the economy has not been hit as hard,” he said.

      Under the German system of wage subsidies to protect workers’ jobs – similar to the UK furlough scheme – the peak number of people accessing the support was the equivalent of 12.6% of the labour force, compared with 26% in the UK, Kenningham added.

      The German statistics office said Germany’s economic growth probably stagnated in the final three months of the year, a period of rising Covid infections when several other big European economies are expected to have fallen into a double-dip recession, including in the UK.

      When adjusted for a shorter number of working days in 2020 than a year ago, German GDP fell by 5.3%, as the pandemic brought widespread disruption to the economy with falls in household spending and industrial production.

      Guardian business email sign-up

      After eight years of budget surpluses, Germany recorded a budget deficit – the gap between government spending and income from taxes – of €158.2bn, almost 5% of GDP, at the end of 2020, according to provisional estimates. The UK is expected to record a deficit of £394bn, or 19% of GDP, for the financial year ending March 2021.

      Rishi Sunak, the UK chancellor, has defended Britain’s economic record, saying the way the Office for National Statistics calculates the contribution of the public sector exaggerates the decline compared with other countries. While economists say this is a factor, they argue it is not sufficient to fully account for the UK’s underperformance.

      Kenningham said: “That only accounts for a relatively small amount of the difference between German and UK economic performance last year.

      “Non-essential retail was generally open last year in Germany and the construction sector fully open. That in turn reflected the less acute health crisis. There have been a lot fewer deaths, the health system less overwhelmed, and had more capacity, and more successful track and trace.”

      — to www.theguardian.com

      Share308Tweet193SendSendShare54Pin69

      RelatedPosts

      Gates Cambridge Scholarship celebrates 20th anniversary
      News

      Gates Cambridge Scholarship celebrates 20th anniversary

      Israel-Gaza conflict rages as US envoy visits
      News

      Israel-Gaza conflict rages as US envoy visits

      Police and Crime Commissioner to end funding for heroin addiction treatment scheme
      Crime

      Police and Crime Commissioner to end funding for heroin addiction treatment scheme

      Nicola Sturgeon’s own economic adviser warns Indyref2 puts recovery at risk
      Economy

      Nicola Sturgeon’s own economic adviser warns Indyref2 puts recovery at risk

      London

      Horse Racing Getting back on track

      News

      Rochdale hopes machine centre will manufacture revival in fortunes

      Recommended Stories

      How healthy is Trump? Years of misinformation make it difficult to know | US news

      The Queen made Kate Middleton a very sweet offer over the weekend

      The Queen made Kate Middleton a very sweet offer over the weekend

      Airbnb wants crackdown plans to be suitable for all of Scotland

      Airbnb wants crackdown plans to be suitable for all of Scotland

      Popular Stories

      • Joe Biden opposes guarded border between Ireland and Northern Ireland | US News

        President Biden Promises to Slash Greenhouse Gas Emissions by 50 Percent by 2030

        2636 shares
        Share 1054 Tweet 659
      • Prince Philip is dead

        2632 shares
        Share 1053 Tweet 658
      • Two US Capitol police officers injured after suspect rams car into barrier and stabbed. Suspect dead

        2372 shares
        Share 949 Tweet 593
      • Prince Harry ‘back in the UK’ ahead of Duke of Edinburgh’s funeral on Saturday

        2143 shares
        Share 857 Tweet 536
      • Juventus chairman Andrea Agnelli says European Super League can no longer go ahead

        2115 shares
        Share 846 Tweet 529
      News Press Live

      © 2021 Copyright - All rights reserved.

      Navigate Site

      • About Us
      • Terms & Conditions
      • Private Policy
      • Advertise With Us
      • Contact Us

      Follow Us

      No Result
      View All Result
      • Home
      • News
        • Crime
        • Economy
        • News of England
        • News of Northern Ireland
        • News of Scotland
      • Royal Family
      • Tv & Showbiz
      • World News
      • JOBS
      • Sport
        • Football
        • Watch Live Score Football (Soccer) Videos

      © 2021 Copyright - All rights reserved.

      Welcome Back!

      Login to your account below

      Forgotten Password? Sign Up

      Create New Account!

      Fill the forms bellow to register

      All fields are required. Log In

      Retrieve your password

      Please enter your username or email address to reset your password.

      Log In
      Are you sure want to unlock this post?
      Unlock left : 0
      Are you sure want to cancel subscription?