German Economy Contracted for the First Time in 11 Years

The German economy contracted for the first time in 11 years. Germany closed the year 2020 with a 5 percent contraction. Although the German economy shrinks near the end of 2020, it is likely not to suffer from the double bottom recession that dominates the Eurozone. According to Germany's statistical office, the new epidemic measures taken in the country will not have as detrimental effects on the economy as the measures taken at the beginning of the year. According to the data released, the government budget deficit reached 4.8 percent of GDP, the highest level since 1995. Germany is the first developed economy to announce the economic growth figures for 2020, and it is likely to have achieved a much better last quarter compared to other European countries. Economists estimate that France and Italy will announce a contraction of around 9 percent, while in the UK they estimate that the gross domestic product could shrink by over 10 percent.     This article has contributions of Bloomberg HT.