In 2020-Q3, the spread of the virus slowed down and the restrictions to fight the COVID-19 pandemic crisis were progressively lifted. These factors triggered a strong rebound in GDP growth (+8.48%) in comparison to the second quarter of the year. The rise in economic activity is visible in all GDP components. However, GDP (and all its components, except government spending) remains, not surprisingly, lower than in the same quarter of the previous year.

The German unemployment rate stays constant at a low 4.5%, one of the lowest figures in Europe, and is only 1.44 percentage points higher than in the same quarter of the previous year. This points to an overall modest negative impact of the pandemic crisis on the German labour market, despite some sectors (e.g. automotive) having been badly hit by the crisis in the first half of 2020. Prices remain relatively stable.

December 2020