STOCK MARKET BSE NSE

Omicron leaves German economy on brink of recession as growth dips

Output in Germany fell by between 0.5% and 1% in the fourth quarter, the state statistics agency Destatis said Friday.

Published: 14th January 2022 05:08 PM  |   Last Updated: 14th January 2022 05:08 PM   |  A+A-

A man wearing a face mask stands near the buildings of the banking district in Frankfurt, Germany, Thursday, Jan. 13, 2022. (Photo | AP)

By PTI

FRANKFURT:  The risk of recession is looming for Germany after Europe's biggest economy shrank at the end of 2021 and as it faces a bumpy start to this year, with the rapid spread of COVID-19's omicron variant deterring people from shopping and travel and supply bottlenecks holding back manufacturers.

Output in Germany fell by between 0.5% and 1% in the fourth quarter, the state statistics agency Destatis said Friday.

Forecasts are also shaky for the first three months of 2022, and two straight quarters of falling output would leave Germany in recession, according to one commonly used definition.

Germany helps set the pace for the entire eurozone, the 19 European Union countries that use the euro currency.

Many German companies have suppliers or factories in other European countries, so Germany's business activity can boost growth for its neighbours.

For all of last year, the German economy grew 2.7%, rebounding from a plunge of 4.6% in 2020 when pandemic lockdowns were at their most severe.

Growth remains 2 percentage points below its pre-pandemic level and lags the estimated eurozone figure of 5%.

Complete statistics for the fourth quarter will be released on Jan.28.

A lag in gathering numbers at the end of the year means the figure for the full year is available before the one for the last three months of the year.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp