The Impact of the COVID-19 Pandemic on the Components of Germany’s Foreign Economic Activity
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Résumé
Data from the German Federal Statistical Office show that economic production in this country decreased significantly in 2020, and gross domestic product decreased by 5% compared to the previous year. This means that the German economy suffered a deep recession in 2020 owing to the consequences of the COVID-19 pandemic, which disrupted the ten-year positive dynamics of economic growth. The purpose of the article is to define the features and characteristics of the impact of the COVID-19 pandemic on the components of Germany’s foreign economic activity. The place and role of Germany in world trade are considered. The impact of the consequences of the COVID-19 pandemic on the economic indicators of Germany and the European Union was examined, in particular, a significant drop in GDP in the second quarter of 2020. It is substantiated that the German economy is export-oriented and at the same time to some extent it is import-dependent. The impact of the COVID-19 pandemic on international trade in goods is outlined. In particular, since March 2020, there has been a significant drop in Germany’s exports and imports indicators owing to logistical problems and failures in supply chains. It is defined that motor vehicles and spare parts for them, as well as machinery and chemical products are the largest groups of goods among the exports and imports of Germany. Using the calculated RCA index, it was found out that according to these groups of goods, Germany also has comparative advantages. The dynamics of export and import volumes of the main commodity groups of Germany is presented. The prolonged impact of the pandemic, in particular the restrictive measures taken in the spring of 2019, on a significant drop in exports and imports in mid-April 2020 has been researched. It is proved that the high degree of openness of the German economy has increased macroeconomic stability in the context of the impact of the pandemic. It is found out that foreign economic activity is one of the important factors that helped the German economy cope with the COVID-19 crisis. A description of the successful EU policy in response to the consequences of the impact of the COVID-19 pandemic is given.
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|---|---|---|
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