German economy shrank by 5% in 2020
|The German economy contracted by 5% in 2020, according to the preliminary gross domestic product (GDP) figures released by the Federal Statistics Office on Thursday.
The headline number beat expectations of -5.1% when compared to the previous reading of -5.2%.
German’s preliminary calendar-adjusted GDP figure for 2020 arrived at -5.3% on an annualized basis.
Separately, the country’s statistical office said that the economy is likely to have stagnated in the fourth quarter of 2020.
Additional takeaways
“There was a slightly positive statistical overhang of roughly 1.5% at the end of last year.”
“Germany's record-high savings rate, pent-up spending power bode well for private consumption this year.”
Market reaction
EUR/USD trades listless around 1.2150 amid firmer Treasury yields heading into the ECB minutes release and US jobs data.
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