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US News German economy is working its way out of the corona low

11:55  30 october  2020
11:55  30 october  2020 Source:   finanzen.net

Ireland is the first EU country to announce second corona lockdown

 Ireland is the first EU country to announce second corona lockdown In the fight against the second wave of the corona pandemic, Ireland is the first EU country to return to lockdown. From Wednesday on, a six-week curfew will apply in Ireland, as Prime Minister Michael Martin announced. The northern Italian region of Lombardy has meanwhile imposed a night curfew, and in Spain several areas with particularly high numbers of cases are being cordoned off. British researchers announced they wanted to target volunteers in the fight against the virus.

When Germany 's ruling coalition took action on March 8, the decisions it made were significant, especially when it came to economic matters. If a company avails of the scheme, workers are laid off temporarily but will still be paid. Their employers receive Kurzarbeitergeld or "short-term work

The German economy is by far the most powerful in Europe, but what are the cultural and educational factors When you consider that only the Dutch work fewer hours among the 34 members of the OECD, that German But this goes only some way to explaining Germany 's current economic might.

The German economy is back in spring after the corona-related crash. The gross domestic product (GDP) rose sharply by 8.2 percent in the period from July to September compared to the previous quarter.

Containerumschlag im Hamburger Hafen. © Christian Charisius / dpa Container handling in the Port of Hamburg.

This is announced by the Federal Statistical Office in Wiesbaden based on preliminary data. However, Europe's largest economy is not yet over the top. Compared to the fourth quarter of 2019, the quarter before the global corona crisis, GDP was 4.2 percent lower.

The growth in the third quarter compared to the previous quarter was reportedly carried by higher private consumer spending and a sharp rise in exports. In addition, companies invested more in machines and other equipment.

Jens Spahn: "So far only developed cold symptoms"

 Jens Spahn: © photocosmos1 / Shutterstock.com Health Minister Jens Spahn has Corona. The coronavirus continues to spread. Health Minister Jens Spahn (40) has now tested positive. The Ministry of Health announced on Wednesday (October 21). So far only cold symptoms have occurred. The 40-year-old immediately went into domestic isolation, it said. Spahn is the first federal minister to be proven to have been infected with the corona virus.

Developing economies are being hit in distinctive ways by the pandemic It is not a general feature of the oil market, but it does highlight the huge imbalance between supply and demand. Other commodities have also seen sharp price falls, although not generally on the scale of oil.

Germany is getting both the short and the long term wrong. Start with the business cycle. Many policymakers think the economy is close to overheating, pointing to accelerating wages and forecasts of higher inflation. In their view, slower growth was expected, necessary even. That is complacent.

In the second quarter of the year, GDP collapsed dramatically after large parts of public life had been shut down as a result of the corona. At the beginning of the year, economic output in Europe's largest economy had already fallen compared to the previous quarter.


Video: Bad mood: Rising numbers of infections put a strain on the Ifo business climate (dpa afx)

The pace of recovery, however, had slowed recently. According to economists, rising new corona infections and the recently decided partial lockdown in November could slow the upswing towards the end of the year. The President of the Institute for World Economy, Gabriel Felbermayr, expects significant economic losses for the German economy.

The damage is likely to be smaller than during the lockdown in March and April. However, growth in the fourth quarter compared to the previous quarter will probably come to a standstill. German industry expects the restrictions to have a major impact on economic activity and consumer sentiment in November.

The mood in companies had already clouded over in October due to the rising number of infections. "Companies are much more skeptical about developments in the coming months," said Ifo President Clemens Fuest recently. The buying mood of consumers was also dampened. According to the Nuremberg consumer research company GfK, optimism fell noticeably.

Opinion: The Corona Economic Monopoly .
The new and only partial lockdown for Germany does not initially hit the economy as hard as it did in spring. Nevertheless, Henrik Böhme is certain that it will slow down the upswing significantly. © picture-alliance / dpa / S. Puchner A worker at the machine builder Voith welds on the blades of a water turbine Many restaurateurs across the country no longer understand the world.

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