The German Economic Institute has estimated that coronavirus in Germany has cost the country around 300 billion euros.
With businesses being forced to close, people unable to work and in need of government aid, it is no surprise that the coronavirus pandemic has had a significant financial impact in Germany. The German Economic Institute (IW) estimates that the country has lost around 300 billion euros during the crisis. “It will take years for the losses and structural upheavals to balance out,” said Michael Hüther, director of the IW and head of its management board.
The economists at IW compared actual and forecast growth with potential growth, which is the predicted growth of the economy over the past six months if the pandemic hadn’t happened, to come up with their estimate.
The IW has projected that Germany will lose around 100 billion euros in the first half of this year and researchers have blamed the nationwide lockdowns for the loss of significant sums of money. However, restrictions in Germany are more recently beginning to ease, as infections rates fall across the country.
“The vaccination rate is finally picking up, that is a signal to the economy that should not be underestimated,” said Hüther. “Nonetheless, we should not be under any illusion that the crisis will just not leave its mark. Without corona, the economy would have grown significantly,” he added.