Covid crisis is costing Germany 391 billion euros

According to calculations by the German Institute for Economic Research (DIW), the German economy has so far lost more than 212 billion euros in prosperity due to the consequences of the Covid pandemic.

Berlin - At the end of the crisis it will be around 391 billion euros, reports Welt am Sonntag, which commissioned the calculation. The economists compared the actual and forecast growth with the so-called potential growth in the years 2020 to 2022. It shows how strong the German economy would have grown without the pandemic. The calculations are based on the assumption that the number of infections will actually fall in spring and that the economy will then start to recover.

"If we do not manage to significantly reduce the number of infections by March, that would be a disaster," said DIW President Marcel Fratzscher. As soon as the state aid runs out, a bankruptcy tsunami could hit Germany. "Most of the people who would then become unemployed would find it very difficult to find a new job in the foreseeable future. Demand would fall significantly - across Europe. It would take years for Europe, and in particular Germany, to settle recovering as it depends heavily on exports to the euro zone."

Source: DerNewsticker

Photo: Michael Kappeler/DPA/Getty