Germany: Lockdown will cost 50 billion euros in the first quarter

The lockdown will cost the German economy around 50 billion euros in the first quarter of 2021.

Cologne - This comes from a calculation by the German Economic Institute (IW) in Cologne, about which the Bild am Sonntag reported. Overall, the decline in gross domestic product as a result of the corona crisis has so far amounted to 250 billion euros. "The corona crisis was and is a shock for the German economy, which is unparalleled," said IW Director Michael Höther.

The federal government's aid packages and short-time work allowance could have averted worse consequences. "However, the disbursements of the aid have been a long time coming, sometimes too long." The IW estimates the number of "zombie" companies that only exist because the bankruptcy obligation is at around 5,000.

Source: Der Newsticker

Photo: Hannibal Hanschke/Reuters