Germany’s economy bounces back into growth

The German economy returned to growth in the second quarter, official data showed Friday, expanding by 1.5 percent from the start of the year.

The gain from the same period last year was 9.2 percent on a price- and calendar-adjusted basis, according to Germany’s Destatis statistics agency.

An aggravation of the Covid-19 pandemic and tighter restrictions had pushed the German economy into a 2.1-percent contraction in the first three months of year.

Subsequently, restrictions have lifted as infections waned and a vaccination campaign gathered pace, allowing more businesses to operate.

Destatis said higher household spending and government expenditure accounted for most of the second-quarter growth.

The German economy still has a way to go to recover from the hit it took from the pandemic, however.

Gross domestic product “was still 3.4 percent lower in the second quarter of 2021 than in the fourth quarter of 2019, the quarter before the coronavirus crisis began,” said Destatis.