German economy grows faster than expected

Photo: AP

The German economy has posted growth in the last quarter of 2020 that exceeded the expectations, Reuters reported quoting the Federal Statistical Office. The country's GDP has expanded by 0.3% for the period from October to December, 2020. Initial reports had shown growth ratio of 0.1%, compared with the third quarter of last year.

The revision meant that last year’s overall drop in GDP was a touch less sharp than originally reported - 4.9% rather than 5%, AP elaborated. That fall ended a decade of growth and was the biggest decline since the financial crisis in 2009.

Still, the coronavirus pandemic has hit Germany’s finances. After years in the black, the government resorted to running up new debt to help cover the cost of huge support packages for workers and an expected shortfall in tax revenue.

The statistics office said Germany had a budget deficit last year of 4.2% of GDP — higher than the 3% normally allowed under eurozone rules. Germany’s economy did better than several others in the 19-country eurozone as it was supported by manufacturing, which has taken less of a hit than services during the pandemic.

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