German economy suffers historic collapse: Biggest GDP drop since Second World War

Veronika Grimm from the Expert Council for the Assessment of Overall Economic Development said: “The year 2020 was an exceptional situation. “Stabilisers such as short-time work prevented bankruptcies and a slump in the labour market with the bridging aid.”

She added a second wave of the deadly coronavirus pandemic, which included a lockdown has now slowed the recovery of the economy.

However, exports have continued to do thrive despite the pandemic.

Ms Grimm said: “And the Germans consume a lot differently than in the spring.”

But hospitality, culture and travel sectors, which have been closed since November, only contributed around five percent to economic output.

The losses from these sectors are expected to be made up by state aid.


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