Economists: The economy is massively slowed down, but not stalled
According to economists, the tightened lockdown resolutions in Germany are likely to slow down the economy, but not to stifle it. “Of course, the extended lockdown has a massive impact on the economy – especially the retail trade and contact-intensive services,” said Commerzbank chief economist Jörg Krämer of the Reuters news agency. “Economic performance is estimated to be four percent lower during the lockdown period than without restrictions.”
The “economically worst” had been avoided, said the chief economist of the German Landesbank Baden-Württemberg (LBBW), Uwe Burkert. “? The adopted measures have a stronger impact on economic activity, but the mainstays of the economic recovery – in particular industry – are largely spared.”
The extension of the lockdown depresses Germany's growth prospects for the first quarter, said DekaBank expert Andreas Scheuerle. “The tightening fell far short of the first reports.” From an economic point of view, the shutdown of passenger traffic, a possible lockdown for industry and border closings were a threat. “These are off the table for now.”
The head of the German economy, Lars Feld, expressed a similar opinion. “The decisions of the federal and state governments will continue to depress economic activity at the beginning of the year,” he told the newspapers of the Funke media group. However, the obligation to work from home will have little impact on production in the manufacturing sector. Industry will “continue to be the engine of the economy”.
