As the Ministry of Economics announced today in Berlin, a slump in gross domestic product (GDP) of 5.5 percent is expected in Germany. At the beginning of September, the Ministry of Economic Affairs had predicted a minus of 5.8 percent. At the end of April, Germany’s GDP was expected to fall by 6.3 percent.
Finance Minister Olaf Scholz (SPD) sees reason for confidence in the German government’s current economic forecast. „We are in a much better position this year than we feared in the spring,“ said the Vice Chancellor. This applies despite the contact restrictions that are now necessary again.
“The fact that we reacted promptly and powerfully pays off,” said Scholz. He promised: „We will do everything we can to break the infection dynamics, to protect lives and our economy.“
However, the Ministry of Economic Affairs said: „Only if we manage to flatten the curve of new infections again can the recovery process of our economy continue and serious damage to companies and employees prevented.“
Close restaurants, cinemas, theaters and the like
The federal and state governments decided on Wednesday the toughest measures since the great lockdown in spring. From Monday, restaurants, cinemas and theaters, among other things, will close for the entire month of November. During this time only a few people are allowed to meet privately and in public. Hotels are no longer allowed to accept tourists.
After the end of the hard lockdown, there was initially a very strong recovery in the German economy in May and June, according to the ministry. When capacity utilization improved again, the recovery slowed down, but continued with the support of extensive economic measures by the German government.
At the same time it was said: „The economic recovery stands and falls with the further development of the infection rate.“ For the coming year 2021, Altmaier expects an increase in GDP of 4.4 percent, for the year 2022 with 2.5 percent. The pre-crisis level would not be reached again until the turn of the year 2021/22 at the earliest.
