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Corona virus: Drastic effects feared for German economy - Lufthansa reacts harshly

2020-02-26T16:15:18.562Z

The corona virus is spreading more and more in China. This has meanwhile also had consequences for the German economy. Economics Minister Altmaier now wants to create incentives for growth.



The corona virus is spreading more and more in China. This has meanwhile also had consequences for the German economy. Economics Minister Altmaier now wants to create incentives for growth.

  • The corona virus * continues to spread.
  • The German economy in particular could be affected.
  • Lufthansa is already responding with a drastic savings program.

Update from February 26, 12.40 p.m .:

The spread of the novel lung disease from China, Covid-19, triggered by the corona virus, is forcing the German economy to act. Companies around the world need to deal with the epidemic. The German airline Lufthansa is now taking concrete measures.

If you only wanted to temporarily stop flights to and from China in January, the Lufthansa Group has now canceled all passenger flights to mainland China by the end of March. The Group also announced further deletions for connections to Hong Kong due to weak demand. This also affects the balance sheet. The group has therefore launched a cost-cutting program. New hires are checked, suspended or postponed to a later date. In addition, employees should be encouraged to take unpaid leave and reduce part-time work.

Corona virus affects the German economy - companies react

But it's not just Lufthansa that is responding to the corona virus . The organizers of the Tire Technology Expo in Hanover have also developed strict safety measures. Visitors or employees who wanted to enter the hall would have to confirm in writing that they had not been to China in the 17 days before their arrival. They would also have to confirm that they have no flu or pneumonia and are not carriers of the new coronavirus. At the entrance, the temperature should also be measured for each visitor via electronic screening.

Wilhelmshaven and Bremerhaven are also expected to suffer economic losses as a result of the virus. No consequences of the epidemic are yet to be seen. The concrete effects on the sea trade with China are still unclear, according to Bremenports. But be sure that it will exist. According to the terminal operator Eurogate, nothing is currently felt in the Jade-Weser port in Wilhelmshaven. But with a view to canceled ship departures in Asia, that's probably only a matter of time.

The citizens of Germany are still relatively calm. So far there have been no hamster purchases, such as in Italy. Neither at Rewe nor at Penny, the Group's own chain of discounters, have so far "noticeable increases in demand", said a Rewe spokeswoman for the dpa. A spokesman for the hypermarket chain Real also said: "We still feel absolutely nothing."

Corona virus endangers German economy - Altmaier wants to act

Original message from February 25, 2020:

Berlin - The corona virus is currently spreading outside of China, in addition to South Korea and Iran, Italy is now also affected by a rapidly increasing number of infections * . Health Minister Jens Spahn said on Monday that Germany would be very well prepared for the virus. But economically, some experts see it differently.

Corona virus: China as an important trading partner worldwide

"It is clear that the economic consequences of the corona epidemic will be significant," said Michael Bissinger, an expert at DZ Bank. China and other Asian countries in particular are currently suffering from production downtimes , disruptions in the supply chains and restricted travel * . The International Monetary Fund (IMF) has already lowered its growth forecast for China, and Unicredit chief economist Erik Nielsen is expecting a significant economic downturn. As the country has become increasingly important for the global economy in recent years, effects on the global economy can also be expected.

+

Peter Altmaier (CDU).

© dpa / Michael Kappeler

Economists from leading German financial institutions expect Germany's economic recovery to be delayed because China is seen as an important trading partner for the country. Federal Minister of Economics Peter Altmaier told dpa on Tuesday that the domestic economy and construction industry in general were developing well, and that export-oriented industry was under more pressure. The corona virus would now lead to uncertainties. "It is therefore crucial that we now provide economic impulses to stimulate growth." As he went on to say, there is scope for relief. It was confirmed that there was a billion dollar surplus in 2019.

Effects of the corona virus in Germany: Altmaier wants to create incentives for growth

Altmaier wants to create incentives for German companies do not fall behind in international competition: "Whoever rejects relief, endangered jobs and our high level of social security in Germany." Partnerships should be taxable for him as well as corporations and relieved at corporate level become. The leaders of the grand coalition had recently agreed on a corresponding project.

FDP chief Christian Lindner said of the current spread of the corona virus: "Because of Corona, the stock markets are going down and the Federation of German Industries warns of an economic downturn." He therefore asked Altmaier and finance minister Olaf Scholz to put together a package, "To prevent the German economy from falling."

Corona virus in Germany: Bottlenecks in deliveries from the Far East

As announced by the Federation of German Industries, several industries are currently anticipating bottlenecks in deliveries from the Far East with regard to electronics , automobiles , pharmaceuticals and paper . The economy in Germany had already started the new year weakly, said Managing Director Joachim Lang. "The effects of the epidemic are increasing the pressure on our companies."

The corona virus spreads rapidly and claims more and more deaths. A virus expert is now warning of the spread of lung disease in Germany * . Is Germany really prepared for Covid19?

* Merkur.de belongs to the Germany-wide Ippen-Digital editors network

nz with dpa

Source: merkur

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