The recovery of Germany, which is called the first economy in Europe, has stalled due to the introduction of new restrictions against the background of an increase in the number of coronavirus cases in the country. According to Bloomberg, GDP growth this year is expected to reach 3 percent, although it was previously forecast at least 4.1 percent.
“The recovery will continue in 2021, albeit at a slower pace,” said Economics Minister Peter Altmeier. After a 5 percent cut last year, the country’s authorities believe in a return to pre-crisis levels only by 2022 – about six months later than the previous forecast.
Coronavirus restrictions in Europe have been gradually tightening since mid-November 2020. The new package of measures includes store closings and meeting restrictions. Lockdown is in effect until mid-February, and amid fears of new strains of COVID-19, there are no signs that the restrictions will be lifted in the coming weeks.
Earlier in January, the International Monetary Fund (IMF) published a new forecast for the global economy. It is expected to grow by 5.5 percent this year. However, there are still risks to sustainable development. The IMF lowered its forecast for the eurozone: the region’s economy this year will grow by only 4.2 percent. Economic activity in the region slowed down in the last quarter of 2020, and the trend will continue in the first half of 2021.