Today: Monday, 28 November 2022 year

Experts predict contraction of German economy in early 2021

Experts predict contraction of German economy in early 2021

The German’s construction sector might contract in the first quarter of 2021 due to the impact of restrictive measures. The Covid-19 pandemic hit hardly the services sector, the Bundesbank announced on Tuesday.

Germany’s economy faces the real consequences of the pandemic, according to the financial institution’s latest monthly report. The figures show that the construction sector is the most fragile so far. In fact, it also slows down due to the increase in taxes on sales, which temporarily cut the previous, toughest-ever, year.

In its report, the central German bank underlines that industrial production also significantly decreased in the first month of 2021. However, the Bundesbank pointed out that orders and exports of goods grew at the beginning of January.

The Bundesbank had previously predicted an economic recovery in the spring as coronavirus contagions fell and vaccines are being distributed, Prensa Latina reported.