German GDP in the IV quarter grew by 0.3%

According to the final data of the Federal Statistical Office of Germany, the country's GDP in the IV quarter grew by 0.3% on a quarterly basis, and decreased by 2.7% on an annualized basis. Analysts predicted GDP growth of 0.1% compared to the previous quarter and a fall of 2.9% compared to the same period in 2019.

Economic growth exceeded forecasts on strong exports, but stricter lockdowns at home and abroad cloud the prospects for Europe's largest economy.

German Economy Minister Peter Altmeier noted that these data are a positive signal, and announced his readiness to make every effort to further restore the German economy.

The statistical office also revised its forecast for GDP decline for 2020, improving it to minus 4.9% from minus 5.0%.

The state budget deficit in 2020 amounted to 139.6 billion euros, or 4.2% of GDP. This is only the second time in the history of a reunified Germany that the current account balance was negative. The last time a deficit was recorded in 2011.