German GDP slumps but optimism up as vaccinations increase

Germany’s economy has contracted more than expected in the first quarter amid coronavirus lockdown measures

BERLIN -- Germany's economy contracted more than expected in the first quarter amid coronavirus lockdown measures, according to statistics released Tuesday, but a leading indicator showed that businesses' optimism is rising as the pace of vaccinations increases. The Federal Statistical Office said that the first quarter gross domestic product in Germany, Europe's largest economy, dropped by 1.8% over the fourth quarter of 2020, according to figures adjusted for price, seasonal and calendar factors. The office's preliminary estimate had been a drop of 1.7%. GDP was down 3.4% over the same quarter last year, when the pandemic was just starting to take hold, according to price adjusted figures, and 3.1% when adjusted for both price and calendar factors. Many facets of the economy were shut down in the first quarter of 2021 as Germany grappled with rising coronavirus infection figures.