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According to the Federal Statistical Office (Destatis), gross domestic product (GDP) in 2021 was 2.7% higher than in 2020 (in price-adjusted terms). “Economic activity in 2021 was once again highly dependent on coronavirus infection rates and the associated containment measures,” said Georg Thiel, President of the Federal Statistical Office, at a press conference in Wiesbaden.

The German economy is still experiencing a period of weakness. According to the Federal Statistical Office’s flash estimate, in the second quarter of 2023, seasonally adjusted real gross domestic product (GDP) stagnated at the level recorded in the previous quarter. The current issue of the Bundesbank’s Monthly Report reports that weak foreign demand and higher financing costs are weighing on the economy. The large backlog of orders in industry and construction and abating supply bottlenecks prevented an even weaker development. The sound labour market acted as a tailwind for the economy. 

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Domestic enterprises, banks, public authorities and individuals are required to report cross-border equity investments on an annual basis wherever their share of capital or voting rights is 10% or higher and the investment enterprise’s total assets are more than €3 million (or the equivalent thereof if its balance sheet is denominated in another currency).

Bundesbank President Jens Weidmann warned that a full-blown trade war between the US and the EU could cost both sides dearly. "The adverse effects might be considerable larger than in case of the trade spat with China“, he said in a speech in New York.

The year 2020 saw German economic output contract by 5.0%, with the drop in gross domestic product in a year overshadowed by COVID-19 bringing to an end a ten-year run of growth. This compares with a 0.6% rate of expansion in 2019.

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