Germany’s statistics official has revealed that the country’s GDP has surged 8.5 percent in the third quarter, media reports said. The Angela Merkel-led nation partly rebounded from the first wave of the Covid-19 pandemic.
It is reported that by higher household spending and soaring exports bolstered the nation’s economic growth. The reports also indicate that the developments have pushed Germany to make up the second quarter GDP loss caused by the pandemic.
Furthermore, the statistical readings have indicated an earlier flash estimate of 8.2 percent growth, and followed by a Q2 plunge of 9.8 percent. However, the outlook is mired by another wave of the coronavirus infections and a partial lockdown to contain the spread of the disease.
Offices, schools, hotels and other public gathering places have been closed since the beginning of this month, but shops and schools are still operational. The government has decided to extend the lockdown until the end of next month.
The country’s GDP is expected to stumble by a contraction in the service sector in Q4. Fresh lockdown measures in other economies are likely to hamper the export-oriented manufacturers too.
DIW economist Claus Michelsen, told the media, “A decline in economic output was therefore on the cards, with initial estimates indicating a GDP drop of around 1% in the final quarter. Germany and many important trading partners are likely to slide back into recession.”
The Pacific Economic Cooperation Council (PECC) report has indicated that the global economy is expected to rebound in 2021, However, it all depends on the launch of a proper vaccine for Covid-19.