German economy on the rise but beer sales down | News | DW

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German economic output rose 1.5% in the second quarter of 2021, the Federal Statistical Office reported on Friday.

Destatis, the German name for the statistics office, attributed the quarterly increase in gross domestic product (GDP) to increased household and government spending after many restrictions on coronaviruses were lifted.

GDP for the three-month period grew 9.6% compared to the same period in 2020, when Germany entered a hard lockdown, plunging Europe’s largest economy into its deepest recession since the financial crisis of 2009.

Will German GDP continue to grow in 2021?

Some analysts see the German economy continuing to rebound strongly this year. Economic forecasting institutes forecast GDP growth of between 3.2% and 3.9%.

Despite the recovery, there are a number of concerns about the health of the country’s economic growth.

Although up from the first quarter of this year, the second-quarter GDP figure did not reach the 2% gain economists had forecast for the period.

In addition, the economy has yet to regain its pre-pandemic size.

The statistics office said GDP was still 3.4% lower in the second quarter compared to the last quarter of 2019 – the last before the pandemic began.

Some economists have pointed to bottlenecks in the global supply chain, hampering German production. This includes the semiconductor shortages that have repeatedly plagued the automotive industry.

There are also concerns that the spread of a highly contagious variant of the delta coronavirus could lead to future lockdowns.

What about sales of German beer?

As consumer spending increased, German beer sales showed the lingering impact of restrictions on coronaviruses.

Sales for the first half of this year were 2.7% lower than a year earlier, according to data released by Destatis on Friday.

German breweries and distributors sold around 4.2 billion liters (1.1 billion gallons) of beer from January to June, the Federal Statistical Office said. This figure does not include non-alcoholic beer or beer imported from outside the European Union.

Some 3.3 billion liters of this product were sold in the domestic market, 4.9% less than a year ago.

In contrast, exports to the European Union increased by 3.5% and to other countries by 11.9%, but they were unable to fill the overall beer sales deficit.

“After seven months of containment, the reopening of the hospitality sector to the outside and inside has only started slowly. bulk beer sector, “said the association of brewers in Berlin. .

Small breweries dependent on the hospitality and events sector have been particularly affected, he said.

kmm / sri (dpa, AP)


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