Production 2020
Double-digit decline in mechanical and plant engineering
The VDMA publishes initial production figures for the pandemic year 2020, showing that the industry is struggling with a double-digit decline. However, the slump was smaller than previously estimated by the association.
Dr. Ralph Wiechers, VDMA Chief Economist, comments on the initial calculations of 2020 production in the mechanical and plant engineering sector: "According to preliminary calculations by the Federal Statistical Office, production in the mechanical and plant engineering sector in Germany fell by 12.1% in real terms in the crisis year 2020 compared to the previous year. We had last estimated the decline at 14%. The deviation is the result of slightly lower declines in production in November and December in the mid-single-digit range. However, this does not change the fact that 2020 represents the worst result since the financial crisis of 2009. At that time, the mechanical and plant engineering sector recorded a drop in production of almost 25%. For the current year, we continue to expect real production growth of 4%, which is only the beginning of a catch-up phase from a low level in view of last year's sharp decline."
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