The German economy slumped by almost five percent last year because of COVID-19. For the current year, however, growth is expected again. But how strong will the plus be after weeks of lockdown and massive losses in gastronomy, trade, and tourism?
On Wednesday, the so-called economic experts, who advise the German government, presented their spring forecast. And it is no longer as optimistic as the last one in autumn.
Volker Wieland (a member of the Council of Economic Experts of the Federal Government), “We have many small businesses in hospitality, retail, or travel services that are obviously suffering badly from this development, from the restrictions. However, this is partly offset by the good development of German industry and especially, of course, because of the high demand from Asia and the USA”.
Last November, the experts were still expecting 3.7 percent growth this year, now they expect only 3.1 percent.
Monika Schnitzer (a member of the Council of Economic Experts of the Federal Government), “Then we see that in January we are already 2.5 percent above the level of last year, which means that they are even above the level before the crisis again”.
The more people who are tested for COVID-19 and, above all, the more who are vaccinated, the better it will be for the economy, say the federal government's experts.
