German consumers spent around 300 billion euros (330 billion U.S. dollars) less during the COVID-19 pandemic than they would have done without the coronavirus, the German Economic Institute (IW) said on Wednesday.

In 2020 and 2021, consumer spending by private households in Germany was more than 8 percent below the modeled consumption level without a COVID-19 pandemic, according to IW. The reduction corresponded to around 3,600 euros per capita, it added.

Limited shopping and leisure opportunities due to COVID-19 restrictions and lockdowns as well as high inflation were the reasons for the situation, according to IW. At the same time, the average household savings rate rose from 11 to 15.5 percent in the past two years.

Germany's entire economy lost around 340 billion euros in value added as a result of the pandemic compared to an economic scenario without COVID-19. The service sector and industry suffered the greatest losses, according to IW.

Gross domestic product (GDP) in 2021 grew by 2.9 percent year-on-year, according to the Federal Statistical Office (Destatis). In view of the pandemic development, the German government lowered its economic growth forecast for 2022 from 4.1 percent to 3.6 percent in late January.