PARIBUS IMMOBILIEN ASSETMANAGEMENT | REAL ESTATE MARKETS
Economic situation in Germany
In the Corona Crisis year 2020, the German economy fell into a deep recession after a 10-year growth phase. Gross domestic product (GDP) declined by 4,8 % year-on-year in price-adjusted terms as a result of the impact of the measures to slow the spread of the coronavirus (SARSCoV- 2). The economic slump was most pronounced in the second quarter of 2020. Here, GDP was 10,1 % below the economic output of the first quarter of 2020 and 11,7 % lower than in the same quarter of the previous year. This marked the sharpest quarterly decline since quarterly GDP calculations for Germany began in 1970. On a full-year basis, however, the decline was somewhat less severe than during the financial and economic crisis of 2008/2009: in 2009, the decline in GDP was 5,7 %. In 2021, GDP in Germany is expected to increase by 3,2 % compared to the previous year, according to the DIW forecast. Forecast for 2022 is an economic growth of 4,3 %.
The annual average number of people in employment in 2020 was around 44.8 million, around 1 % lower than in 2019. Thus, in 2020, the increase in employment in Germany that had lasted for more than 14 years – and continued during the financial and economic crisis of 2008/2009 – came to an end. Due to the economic upheavals, the unemployment rate also rose again in 2020 for the first time in six years. It averaged 5,9 % last year (average 2019: 5 %) and marked the highest level since 2016.
As of: May 2021
Sources:
- Statistisches Bundesamt: Annual average unemployment rate in Germany from 2005 to 2021
- Statistisches Bundesamt: Development of real gross domestic product (GDP) in Germany from 2008 to 2020 and DIW forecast until 2022 (compared to previous year
- Statistisches Bundesamt: Employment 2020 – Upward trend in the labour market ends after 14 years
- Statistisches Bundesamt: Gross Domestic Product – Detailed results on economic performance in Q2 2020
- Statistisches Bundesamt: National accounts I Gross domestic product (GDP)
Office, Residential and Hotel Real Estate markets in Germany
The developments and trends of the Real Estate submarkets in Germany can be found here: