The essay will discuss Germany’s gross domestic product and economic performance. According to the country’s federal statistics office, Germany’s economy grew at 0.6% in 2019. Notably, this was a sharp slump in growth and highlighted a weak expansion since 2013. The 2019 annual gross domestic product has shown a slowdown compared to growth rates recorded in 2018 and in 2017. Germany has primarily experienced consistent growth for ten years now, and it is the longest streak in united Germany. Economic growth in 2019 got supported by consumption expenditure.
GERMANY’S ECONOMIC PERFORMANCE AND HOUSEHOLD CONSUMPTION
An analysis of Germany’s economic performance shows that Gross Domestic Product shrunk by 9.7 percent in the April-June period. Considering the coronavirus pandemic had an expected 10.1 percent plunge, a comparison shows positives. However, this was the deepest quarterly GDP as efforts to deal with COVID-19 affected activity and demand. Household consumption tumbled at 10.9 percent while fixed investment slumped by 7.9 percent. Moreover, investment in machinery and equipment and construction also slumped greatly. However, exports plummeted by 20.3 percent while imports fell to 16 percent. Germany recorded the steepest decline for its economy as a result of COVID-19.
Germany’s economic performance and household consumption
GERMANY’S GROSS DOMESTIC PRODUCT AND GINI INDEX
The GINI index measures the extent to which the distribution of income among households deviates from perfectly equal distribution. Accordingly, a Lorenz curve helps plot the cumulative percentages of total income received against the recipients. The curve starts with the poorest household or individual to the richest. The GINI index primarily measures the area between the Lorenz curve and a hypothetical line of absolute equality. Germany’s GINI index, according to World Bank estimates, was 31.70 in 2015. In conclusion, an analysis of Germany’s gross domestic product and economic performance shows that the recent COVID-19 pandemic greatly affected its economy.
Germany’s gross domestic product and GINI index
