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Economy fears another Corona slump: "A scenario similar to last year"

2021-11-24T09:23:07.792Z

According to the Chamber of Commerce and Industry, the German economy is again suffering severely from the corona situation. Even DIW boss Fratzscher does not expect a quick recovery in view of the increasing numbers.



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Stalls at the Christmas market in Münster: Should be able to take place under 2G conditions

Photo: Rüdiger Wölk / IMAGO

The German economy is facing difficult times again in view of the escalating corona situation. The German Chamber of Commerce and Industry is now sounding the alarm. DIHK President Peter Adrian said: "Highs on the stock markets should not hide the fact that large parts of the German economy are already doing pretty badly again."

"With the cancellation of Christmas markets, the cancellation of Christmas parties and overnight stays, entire industries are experiencing a scenario similar to last year," says Adrian.

It mainly affects those who normally generate 30, 40 percent or more of their sales in these weeks.

»The fact that you can only offset your current losses for tax purposes with the 2020 corona year is neither a consolation nor a help.

We need a stronger view of the practical problems and a reliable perspective. "

Transitional aid is »not a viable economic model«

Adrian said it was right to extend the corona aid again in view of the dramatic situation - the federal government wants to extend the bridging aid III Plus, which was previously limited to the end of the year, until the end of March 2022. "But everyone in the economy knows that this is not a sustainable economic model in the long term." A clear compass of politics is now necessary for companies and employees. This applies both to dealing with the corona pandemic and to climate protection.

From the point of view of the economist Marcel Fratzscher, the worsening corona situation is making economic recovery more difficult.

"We shouldn't be too optimistic about 2022," said the head of the German Institute for Economic Research in Berlin.

You have to be prepared for a very difficult time.

Among other things, because of the very different vaccination rates worldwide, the pandemic is far from over, said Fratzscher.

In view of this situation, leading economic research institutes had already lowered their economic forecasts for this year.

In the meantime, the situation has deteriorated again, and most recently the Bundesbank also gave a clearly pessimistic outlook on economic development than before.

For Germany, Fratzscher nevertheless emphasized: "We have survived this pandemic relatively well economically so far." “We have a lot of catching up to do. The state has lived on its substance for the last 20 years. «He proposed credit authorizations of 500 billion euros, which are granted once for the next ten years.

Most of the money should flow into the municipal infrastructure.

In addition, investments in education, residential construction, supra-regional infrastructure such as broadband and rail, as well as in climate protection are necessary.

"Long-term planning is important," said Fratzscher.

Given the low interest rates, he said, "National debt should be the least of our worries."

apr / dpa

Source: spiegel

All business articles on 2021-11-24

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