Overview
- Due to COVID-19, GDP declined by 4.6% in 2020: a moderate decline in international comparison. In 2021, growth of 4.3% is expected
- Stability of the external sector during the crisis: current account surplus (2020: 4.7% of GDP), moderate exchange rate dynamics, international reserves reached their highest level since 2012 (USD 29 bn)
- Inflation is currently at the 5% target of the central bank, policy rates were decreased to a historic low of 6% to support economic recovery
- During the crisis, the budget deficit considerably increased (2020 estimate: 5.6% of GDP), and will decrease only slightly in 2021, public debt meanwhile increased to 65.7% of GDP
- International trade declined by 9.1% after 11M2020: stronger decrease of imports (-12,9%) than exports (-3,5%)
Topics
- IMF programme. IMF-support remains vital, reinforced reform effort is necessary
- Banking sector. Stability during crisis proves importance of reforms in previous years
- Coal transition. Phase-out of coal mining will be supported by Germany
- Electricity market. Still a long way to go to a fully liberalised market
- COVID-19. Development of case numbers, domestic measures, economic support