Gross domestic product (GDP) increased by 1.6% between April and June compared to the previous quarter, according to figures released recently by the Federal Statistical Office.
The German economy grew 1.6% in the second quarter of this year, mainly on consumer spending as the COVID-19-induced lockdown was eased. The growth helped the German economy out of an economic trough that saw it contracting earlier in the year. The crisis had caused a 2% drop in economic performance in the first quarter of 2021.
With reduced containment restrictions, final consumer spending in the second quarter of 2021 is up sharply from the start of the year.
Two key factors helped fuel the rebound. Household final consumption expenditure increased 3.2 percent from the first quarter, while a measure of government spending increased 1.8 percent.
The the effects of the pandemic still appear marked, however. Compared to the fourth quarter of 2019, GDP was 3.3% lower, according to German newspapers.
Public spending to cushion the economic blow of the crisis has left an 80.9 billion euro ($ 95 billion) hole in public finances for the first half of 2021.
Fibre2Fashion Information Office (DS)