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Bundesbank Announces That German Economy May Shrink

Bundesbank announces that the German economy may shrink. In the report announced by the Bundesbank, it was noted that the German economy could shrink in the 4th quarter.

Yazar: Elif Dinçer

Yayınlanma: 16 Kasım 2020 20:41

Güncellenme: 28 Mart 2024 12:47

Bundesbank Announces That German Economy May Shrink Bundesbank announces that the German economy may shrink. In the report announced by the Bundesbank, it was noted that the German economy could shrink in the 4th quarter due to the re-tightening of coronavirus measures. It was emphasized that financial policy support should continue in 2021. The Federal Reserve Bank of Germany warned that the country's economy may not grow or shrink in the last quarter of the year as a result of the increase in cases occurring in the coronavirus epidemic causing tightening of measures. In the monthly report of the institution, which stated that domestic social restrictions were relatively weaker than in spring and focused on the accommodation and entertainment sectors, it was emphasized that exports were negatively affected by the increase in cases in Europe. All things considered, the institution expects that the effects of the measures on the economy will be less strong compared to after March and April. “A stabilizing fiscal policy will continue to be important next year. The government has considerable room to expand fiscal stability as needed” as the report said. Cases and deaths seen in Germany are much less compared to England, France and Italy. However, officials warn that the healthcare system is threatened with overload due to rapidly filling hospitals. After the recent social restrictions, the spreading rate of the virus decreased very slowly. That's why German Chancellor Angela Merkel demands more social restrictions.
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