Germany Suffers 300 Billion-Euro Hit From Covid Fallout, Research Group Says
Germany has suffered a 300 billion-euro ($366 billion) blow from fallout linked to the coronavirus and the economic damage will take years to fix, according to research group IW Cologne.
The pandemic is projected to slash about 100 billion euros from the output of Europe’s largest economy in the first half of 2021, adding to the hit last year, the research institute said Monday. While a faster vaccination program is promising, the impact of lockdowns will leave a mark.
“It will take years for the losses and structural distortions to be balanced out,” Michael Huether, director of the Cologne-based researcher, said Monday in an emailed statement. “The vaccination rate is finally increasing, and that’s a signal to the economy that shouldn’t be underestimated.”
The total impact represents about 9% of Germany’s annual gross domestic product. The country’s economy is enduring a moment of flux as it tries to shake off the crisis, just as the era of Chancellor Angela Merkel draws to a close.
Germany has begun easing lockdown measures as infections fall. On Monday, the country reported 62.5 cases per 100,000 people over the previous seven days, the lowest rate since late February.
After a sluggish start, vaccinations have accelerated and some 40% of the population has received at least one shot and about 14% are fully inoculated, according to the German Health Ministry.
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