EU drives Germany to robust growth

Photo: EPA

German economy enjoyed a strong rebound in March on the back of strong demand from EU Member States, AP reported. The robust growth compensated for the weak start of 2021 overshadowed by pandemic slowdown. Factory production and exports surged in Germany in March, according to official statistics. The Economy Ministry said industrial production rose 2.5% in March over February when adjusted for seasonal and calendar factors. The increase followed drops of 1.9% in February and 2.2% in January.

In a separate encouraging report, German exports were up 1.2% in March over February, and up 16.1% over March of last year, according to seasonally and calendar adjusted figures from the Federal Statistical Office.

In the first quarter, exports were up overall 2.4% over the same quarter of 2020, with a strong 4.8% rise in exports inside the European Union brought down by a 0.3% drop to non-EU countries. Imports rose 4.5% in the EU and fell 0.1% from outside the EU. The first quarter of 2021 was the first since Britain’s exit from the EU, and it was the first time ever the United Kingdom had dropped out of Germany’s top five most important export destinations. In the first quarter, German exports to Britain dropped 17.6% while imports from Britain dropped 27.7% over the same quarter in 2020. Germany’s economy did better last year than several others in Europe as it was supported by manufacturing, which has taken less of a hit than services during the pandemic. German authorities haven’t imposed any shutdowns on industry during the crisis, but many restrictions on businesses such as restaurants, bars, hotels and leisure facilities remain in place.

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