Corona shutdown: economies expect weaker growth

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Shopping street in Mannheim in December: The shutdown is slowing economic development

Photo: Ralph Peters / imago images

Because of the Corona shutdown, Germany's economy will, according to the head of economic management, Lars Feld, develop weaker than previously predicted.

Lars Feld of the “Funke Mediengruppe” said that the prognosis of the council of experts “probably needs to be revised downwards somewhat”.

For the year 2021, the German Council of Economic Experts has so far predicted growth in gross domestic product of 3.7 percent.

Feld, which assumes a lockdown after January 10th, now expects a lower value.

So there is "still uncertainty about the further course of the infection, which can inhibit the dynamics."

"Relatively moderate declines"

The economist said, however, that it could still be a three before the decimal point, as the Bundesbank recently expected: "The further dynamic in 2021 will be positively influenced by the vaccination that has just started."

In addition, the current corona restrictions are still far removed from the intensity of the lockdown last spring.

The borders are still open and the supply chains remain largely intact, Feld said.

So far, the intention has also been to reopen daycare centers and schools after the partially extended Christmas break after January 10th.

If this remains the case, according to Feld, the existing lockdown will "only have a relatively moderate effect on gross domestic product in the 4th quarter of 2020 and in the 1st quarter of 2021."

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