What Is The Nature Of The German Economy At The Moment, In 2020?

It’s one of the most promising economies in all of the enigmatic continent, not just in Western Europe. The highly-developed, social market economy is, as a matter of fact, considered among the most powerful in all of the world, locking horns, often with the likes of Japan and Britain.

A contributor to, commonly speaking, fourth or fifth largest nominal GDP in the world, this is an economy that even the likes of France, Italy, Switzerland look up to, one that receives tremendous regard even from the likes of Turkey, a notable force in Trans-continental Europe.

But having said that, there was trouble brewing for the said economic force all thanks to the 2020 Pandemic, which affected, largely its growth and importantly, led to a paucity of jobs. For well over a quarter of this year, there have been myriad concerns about the state of the German economy, which experts now feel, is going to bounce back.

And that’s not the only positive news surrounding the mighty muscle of Europe; it turns out that the German economy is also going to bounce back and experience familiar sunshine in this year itself.

So what are the experts and economists suggesting at this point in time? The general view from ground zero is that the economy is set to experience better days soon, which is faster than what was originally expected in a year where nothing’s quite gone right for much of the world.

Where the words of the German economic minister Mr. Peter Altmaier stand then the economy is doing much better than expected and much of it is down to the great response from the state to a pandemic that’s led to a crushing loss of jobs and economic decay in the wider world.

Therefore, the Coronavirus shock, shudders that it might have sent the economy, hasn’t really brought the German economy to a state of standstill.

In the words of a report published on Money Control (moneycontrol.com), the following excerpt explains the current wave of optimism being felt in Germany:

Confirming an earlier Reuters report, Altmaier said Berlin had revised upwards its 2020 forecast to a decline of 5.8 percent from a previous estimate of 6.3 percent.

Still, this would represent the biggest economic slump since the end of World War Two. During the global financial crisis, the economy contracted by 5.7 percent in 2009.

For 2021, the government revised downward its growth forecast to an expansion of 4.4 percent from its previous estimate of 5.2 percent. This means the economy will not reach its pre-pandemic size before early 2022, Altmaier said.

Moving on, it suffices to state that there’s no sign of panic in the German economy since, efforts are already on to prepare for fresh 2021 budget with new debt!

Ever since the Coronavirus wave struck the beating heart of Western Europe, the state with all its might prepared to head for a combat mode, executing a slew of rescue and stimulus measures in order to encase consumers and companies from the shock-waves the pandemic was determined and nearly certain to induce.

Suggested Read: Does Germany Have A Special Relationship With Turkey?

But even then, in the first wave of the Coronavirus pandemic, before it would rise to become the cancer of the ongoing year, the German economy, experts noted, was faring much better than the other Eurozone economies. Well, was it inherent resilience of the kind the German DNA is known for or better planning with the available resources; we don’t know! What we know is that bright sunshine awaits the economy in the days to come.