Germany’s economy could suffer a “serious setback” if the authorities decide to extend the severe restrictive measures due to COVID-19. This follows from the report of the Central Bank of Germany.
“If the spread of the coronavirus cannot be significantly mitigated, and the current restrictions affecting economic activity are maintained or tightened, this could lead to a serious setback [for the country’s economy],” the Bundesbank said in a statement.
Also, the Central Bank report specifies that over the last three months of 2020, the German economy showed zero growth, as the downturn in the hotel business and retail was offset by a rebound in industry and construction.
On January 5, the German authorities decided to extend the strict quarantine in the country until January 31. Chancellor Angela Merkel called on all residents of the country to reduce their social contacts to the “absolute minimum.” Previously, the regime of severe restrictive measures was in effect in Germany until January 10.
In September 2020, Germany was the only country in the eurozone to show stable economic growth. Growth in global trade is helping to recover from the pandemic and pulling out the export-oriented German economy.