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HomeLatest NewsGermany's GDP grows 1.9% in 2022 and super pre-pandemic levels

Germany’s GDP grows 1.9% in 2022 and super pre-pandemic levels

Date: March 28, 2024 Time: 21:24:49

The gross domestic product (GDP) of Germany, the largest European economy, broke an annual expansion of 1.9% in 2022, slowing down seven and tenths compared to the growth of 2.6% in 2021, as reported by the Federal Statistical Office (Destatis).

In this way, the German economy changed in 2022, exceeding the pre-pandemic level for the first time, since Germany’s GDP stood 0.7% above the figure for 2019, the last full year before Covid -nighteen.

“The German economy as a whole performed well in 2022,” said the president of the Federal Statistical Office, Ruth Brand, at a press conference, who noted that the economic situation was hampered in 2022 by the war in Ukraine and the “extremely high increases in energy prices”.

On the demand side, Destatis explained that it was mainly household final consumption spending that was the main driver of growth for the German economy in 2022, with an increase of 4.6% compared to the previous year, thus probably reaching the level prior to the 2019 crisis.

On its side, the 1.1% increase in government final consumption spending in 2022 was relatively modest after two years surely affected by the pandemic, including a notable increase in public spending to feed and accommodate all people in Ukraine and elsewhere. countries seeking protection, while the one related to the Covid pandemic arrived.

In turn, gross fixed capital formation in construction fell by 1.6% adjusted for prices in 2022, while gross fixed capital formation in machinery and equipment increased by 2.5% compared to the previous year.

Foreign trade increased in 2022 compared to the previous year despite high price increases, including an increase in exports of goods and services of 3.2%, although imports increased 6.7%. Thus, the balance of exports and imports had a downward effect on GDP growth.

On the other hand, Destatis indicate that the economic slowdown in 2022 was reached with an average of 45.6 million employed people, 1.3% more or 589,000 additional people, which represents a new record in Germany.

He also highlighted that Germany reduced a financial deficit of 101.6 billion euros in 2022, according to provisional calculations, less than the 134.2 billion in 2021 due to the completion of the measures against lalac Covid-19 and despite the reioned burdens of the energy crisis due to the War in Ukraine.

As in 2021, the deficit of the central government (-117,600 million euros) was somewhat higher in 2022 than the deficit of all the Public Administrations, since at the state, local and Social Security levels they registered small financial surpluses. Average as a percentage of nominal GDP, Germany’s deficit in 2022 was 2.6%, substantially below the previous two years.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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