Business · Economy · 9 hrs ago
German household spending fell in 2020 and rose sharply in 2022
Household spending makes up about 55% of Germany’s economy, so changes in what people buy can affect demand, jobs and business profits.
Private consumption includes household spending on goods and services such as housing, food, transport and leisure.
Since 1992, it has grown by an average of 1.1% a year, usually rising by up to 3% annually.
Spending fell 6.3% in 2020 as pandemic restrictions limited travel, dining out and leisure activities.
It rose 6.3% in 2022, after most restrictions ended and households spent more on restaurants, accommodation and package holidays.
Higher spending on fuel and home energy also contributed, amid the energy crisis linked to the war in Ukraine.
Germany’s statistics office includes some non-cash items in its measure, such as the rental value of owner-occupied homes; no further developments are specified.
German household consumer spending fell by 6.3% in 2020 compared with the previous year.
Spending rose by 6.3% in 2022 compared with 2021.
The article links the 2020 fall to measures to contain the coronavirus pandemic.
It attributes the 2022 rise partly to increased spending on hospitality, accommodation, package holidays, fuel and home energy.
Private consumption accounts for about 55% of Germany’s gross domestic product.
- Who
- Private households in Germany.
- What
- Their consumer spending fell by 6.3% in 2020 and rose by 6.3% in 2022.
- When
- The changes were in 2020 and 2022, compared with the preceding years.
- Where
- Germany.
- Why
- Pandemic measures limited spending opportunities in 2020. In 2022, spending rose after most pandemic restrictions ended, alongside higher spending on several categories including fuel and home energy.
This story does not have two clearly opposing sides.
Measures to contain the coronavirus pandemic restricted opportunities to spend, and household consumer spending fell by 6.3% compared with 2019.
After most coronavirus restrictions ended, household consumer spending rose by 6.3% compared with 2021.
- 2020 spending change
- Fell 6.3% compared with 2019
- 2022 spending change
- Rose 6.3% compared with 2021
- Share of GDP
- About 55%
- Average annual growth since 1992
- 1.1%