Germany says economy may grow 4% this year as pandemic eases

A senior official says the German economy, Europe’s biggest, may grow up to 4% this year as the coronavirus pandemic recedes

BERLIN -- The German economy, Europe's biggest, may grow up to 4% this year as the coronavirus pandemic recedes, a senior official said Thursday. Economy Minister Peter Altmaier's comments marked the anniversary of the government's agreement on a stimulus package to help kick-start the economy, which included cutting value-added tax during the second half of last year and giving families a one-time 300-euro ($366) payment per child. Other aid packages have helped keep companies above water during months of virus closures, while extensive use of a short-term salary support program has kept workers on payrolls and unemployment in check. Last year, Germany’s gross domestic product shrank 4.9%. That was the biggest decline since the financial crisis in 2009, but Germany did better than several other European nations because manufacturing took less of a hit than services during the pandemic.