Upbeat exports, solid construction activity lift German economy in Q4
Germany bounced back better than expected in the fourth quarter of 2020, as the Federal Statistics Office on Wednesday showed a 0.3% economic growth amid the coronavirus pandemic.
After the country surpassed the 0.1% growth estimate, the Federal Statistics Office moved up its 2020 full-year GDP estimate to -4.9% from -5.0%.
Europe’s biggest economy contracted 5.3% in 2020, relatively smaller than in many economies in the European bloc. The growth was fueled by a strong fiscal response to the coronavirus crisis from the German government.
Germany’s sustained economic growth in the fourth quarter was aided by export activities which expanded 4.5%. Also, construction investments grew 1.8%. Meanwhile, the country’s household spending fell 3.3%
The Statistics offices recorded a 139.6 billion euros state budget deficit or 4.2% of gross domestic product in 2020. This was the first budget deficit to be recorded in almost a decade and the second-biggest since German reunification.