The German economy contracted 5.0% in 2020. The headline is a little better than estimates of a 5.1% and 5.2% decline in economic output for the whole of last year. However, it is still relatively poor, all things considered, but arguably not as bad as feared back in March and April last year. The annual estimate is non-seasonally adjusted.

Of note, private consumption declined 6.0% y/y following a 1.6% y/y boost in 2019. Meanwhile, exports slumped 9.9% y/y and imports 8.6% y/y, following an increase of 1.0% y/y and 2.6% y/y in 2019 respectively.

Comments by German RKI president, Lothar Wieler

Well, that’s the hope. We’ll see from the vaccine rollout though, and how effective it is in achieving a herd immunity later on in the year before reassessing the situation.

• German economic growth this year likely to be weaker than expected
• Government will continue with its strong response to the pandemic
• But measures can only be temporary
• We will do everything in our means to guarantee that this will be a recovery year
• But the economy is likely to grow less this year than previously expected