20:40 24/08/2021
Consumer spending contributed to economic growth by 1.6%
Despite the consequences of the crisis in the Eurozone, caused by the coronavirus pandemic, the German economy continues to grow more than expected. Consumers' willingness to shop has helped the German economy recover.
According to the latest official statistics, the gross domestic product increased by 1.6% in the second quarter, while experts had previously predicted an increase of 1.5%. Households spent 3.2% more than before, contributing to the overall growth of the economy.
Government consumption increased by 1.8%. Foreign trade, however, slowed the economy as exports grew by 0.5%, less than imports by 2.1%.
During the past year due to the pandemic, the German state recognized a deficit for the first time since 2011. Immediately after the pandemic began in March 2020, the state supported the economy with billions of Euros in aid.
These aids destroyed the German national budget becoming a burden on the public treasury, but now Germany is freeing itself again due to these positive rates with which the German economy is moving.
It remains to be seen whether the economy will return to its pre-crisis level. Experts see the Delta variant and the decline in vaccinations among citizens as risks for the economy.
Clan News
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