German Economy Faces New Problems Amid COVID-19 Lockdown

Germany’s GDP may decline in the last three months of this year, writes Bloomberg.

The European Union’s main economy is facing new challenges amid a spike in coronavirus rate of spreading in the autumn, as well as the country’s restrictions.

The authorities have been forced to adopt new restrictions, including those that affect the economy.

In particular, according to the Bundesbank, Germany’s exports suffered a serious blow. Overall, the regulator predicts that GDP will not be affected as much as it was after the lockdown in March and April.

According to the bank, it is still difficult to take properly calculated measures that, on the one hand, could effectively curb the growth of COVID-19 and, on the other hand, would not destroy the economy.

The agency notes that the European Central Bank (ECB) is working on a new stimulus package that could stop a possible double recession in the eurozone in the last quarter of 2020. In doing so, the ECB will focus on emergency bond purchases and long-term borrowing, said Bank President Christine Lagarde earlier.

source: bloomberg.com

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