German economy narrows for 1st time in 11 years

Pandemic hits industry and services sectors in Germany, says statistics office

German economy narrows for 1st time in 11 years

The German economy narrowed 5% in 2020 on a yearly basis, its first contraction in 11 years, according to official preliminary data released Thursday.

The country's economy last narrowed in 2009, by 5.6%, the Federal Statistical Office (Destatis) said.

Germany in 2019 saw annual gross domestic product (GDP) growth rates of 0.6% and 1.3% in 2018. 

According to Destatis, the industry and services sectors were hit by the COVID-19 pandemic last year, while the construction sector posted a rise.

Destatis said: "The corona pandemic also had a massive impact on foreign trade. Exports and imports of goods and services in 2020 decreased for the first time since 2009."

After appearing in China in December 2019, COVID-19 spread across the globe, killing millions and causing a huge economic fallout.