Wednesday, January 19, 2022
HomePoliticsEuropean PoliticsGermany economy expanded by 2.7 percent in 2021, remains below pre-crisis level

Germany economy expanded by 2.7 percent in 2021, remains below pre-crisis level

FRANKFURT – The German economy expanded by 2.7 percent in 2021, preliminary data by the German statistics office showed today.

“The economic performance has not yet reached its pre-crisis level again,” the statistics office president, Georg Thiel, said. In 2020, the German economy contracted by 4.6 percent.

According to the report, economic performance increased in nearly all sectors last year.

The country’s export-driven economy has been hit especially hard by global supply bottlenecks, leaving performance far behind expectations. That’s a major reason why Germany may not return to pre-crisis GDP levels for some time, latest Bundesbank projections suggest.

The German central bank in December said it expected the economy to contract in the first quarter before gaining “significant momentum” in the spring. During a press conference presenting the data, Thiel confirmed that the economy will likely have contracted in between October and December, given the fresh coronavirus wave. On January 28, the statistics office will release official data for the fourth quarter of 2021.

Still, analysts and industry bodies remain optimistic that Germany’s recovery is merely delayed. Earlier this week, the Federation of German Industries (BDI) said it expects GDP to grow 3.5 percent in 2022. In December, the Bundesbank issued an even more optimistic forecast for a 4.2 percent rebound in 2022 and 3.2 percent growth in 2023.

This article is part of POLITICO’s premium policy service: Pro Financial Services. From the eurozone, banking union, CMU, and more, our specialized journalists keep you on top of the topics driving the Financial Services policy agenda. Email [email protected] for a complimentary trial.

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