But encouraging signs of resilience
The Bundesbank warns of a noticeable setback for the German economy. This could occur if the infection rate does not subside significantly and the current restrictions on economic life persist for longer or are further tightened, the Bundesbank announced in its January monthly report. But there are also encouraging signals regarding the resilience of the German economy.
According to the central bank, these give hope that the restrictions that were extended and tightened at the start of the year will not set the recovery back too far. “The fact that the prospects for international business have improved due to the trade agreement reached between the EU and the United Kingdom, among other things,” said the Bundesbank, also has a supporting effect.
She expects the gross domestic product (GDP) to roughly stagnate in the fourth quarter of last year. There was probably no major setback. Some areas of the economy that were not directly affected by containment measures continued to recover. “Above all, the industry should be mentioned,” explained the experts.
