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German economy suffers historic collapse: Biggest GDP drop since Second World War
January 14, 2021
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Veronika Grimm from the Expert Council for the Assessment of Overall Economic Development said: “The year 2020 was an exceptional situation. “Stabilisers such as short-time work prevented bankruptcies and a slump in the labour market with the bridging aid.”
She added a second wave of the deadly coronavirus pandemic, which included a lockdown has now slowed the recovery of the economy.
However, exports continued to do very well. “And the Germans consume a lot differently than in the spring.”
The economist is therefore confident despite the renewed restrictions. The hospitality, culture and travel sectors, which have been closed since November, only contributed around five percent to economic output.
This can be cushioned for a longer period of time by state aid, which is also required by closed businesses.
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