Germany upbeat about economic rebound despite virus fears
The German economy grew by 8.2 per cent in the third quarter and is forecast to shrink less than expected in 2020, official data showed on Friday, even as the country faces new shutdowns to contain a second coronavirus wave.
Federal statistics agency Destatis said the rebound in July to September, coming after a historic slump in the second quarter, was driven by “higher final consumption expenditure of households, higher capital formation in machinery and equipment and a sharp increase in exports”.
Analysts from financial information service Factset had predicted an increase in gross domestic product of 7.4 per cent after a plunge of almost 10 per cent during the second quarter.
Overall, the government now expects Europe’s top economy to shrink by 5.5 per cent in 2020, Economy Minister Peter Altmaier said – an improvement on September’s prediction of 5.8 per cent. Its estimate of 4.4 per cent growth for 2021 remains unchanged.
The recovery is subject to the further development of the pandemic, “but I am sure that with the tough and decisive measures we have taken... we have a real chance to achieve this growth,” Altmaier said.
Germany, like the rest of the continent, has in...