Economy in Shock — Financial Policy is Holding Up
Abstract According to the leading German economic research institutes, the German economy is experiencing a drastic slump as a result of the corona pandemic. In order to slow down the wave of infection, the state has severely restricted economic activity in Germany. As a result, GDP is expected to s...
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| Format: | Article |
| Language: | deu |
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Sciendo
2020-04-01
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| Series: | Wirtschaftsdienst |
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| Online Access: | https://doi.org/10.1007/s10273-020-2629-z |
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| author | Oliver Holtemöller Stefan Kooths Claus Michelsen Torsten Schmidt Timo Wollmershäuser |
| author_facet | Oliver Holtemöller Stefan Kooths Claus Michelsen Torsten Schmidt Timo Wollmershäuser |
| author_sort | Oliver Holtemöller |
| collection | DOAJ |
| description | Abstract According to the leading German economic research institutes, the German economy is experiencing a drastic slump as a result of the corona pandemic. In order to slow down the wave of infection, the state has severely restricted economic activity in Germany. As a result, GDP is expected to shrink by 4.2% this year. The recession is leaving clear traces on the labour market and the national budget. At its peak, the unemployment rate will soar to 5.9% and the number of short-time workers to 2.4 million. This year, the fiscal policy stabilisation measures will lead to a record deficit in the general government budget of 159 billion euro. After the shutdown, the economy will gradually recover. Accordingly, the increase in GDP next year will be strong at 5.8%. This forecast is associated with considerable downside risks, e.g. because the pandemic can be slowed faster or because the recovery of economic activity will be less successful than expected or there may be a new wave of infection. |
| format | Article |
| id | doaj-art-698044b48d5b45379beeb95c51b47372 |
| institution | Kabale University |
| issn | 0043-6275 1613-978X |
| language | deu |
| publishDate | 2020-04-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Wirtschaftsdienst |
| spelling | doaj-art-698044b48d5b45379beeb95c51b473722025-02-02T12:00:00ZdeuSciendoWirtschaftsdienst0043-62751613-978X2020-04-01100425425810.1007/s10273-020-2629-zEconomy in Shock — Financial Policy is Holding UpOliver Holtemöller0Stefan Kooths1Claus Michelsen2Torsten Schmidt3Timo Wollmershäuser4Abteilung Makroökonomik, Institut für Wirtschaftsforschung HalleLeiter Prognosezentrum, Institut für WeltwirtschaftKonjunkturpolitik, DIW BerlinRWI - Leibniz-Institut für Wirtschaftsforschungund Befragungen, ifo Zentrum für KonjunkturforschungAbstract According to the leading German economic research institutes, the German economy is experiencing a drastic slump as a result of the corona pandemic. In order to slow down the wave of infection, the state has severely restricted economic activity in Germany. As a result, GDP is expected to shrink by 4.2% this year. The recession is leaving clear traces on the labour market and the national budget. At its peak, the unemployment rate will soar to 5.9% and the number of short-time workers to 2.4 million. This year, the fiscal policy stabilisation measures will lead to a record deficit in the general government budget of 159 billion euro. After the shutdown, the economy will gradually recover. Accordingly, the increase in GDP next year will be strong at 5.8%. This forecast is associated with considerable downside risks, e.g. because the pandemic can be slowed faster or because the recovery of economic activity will be less successful than expected or there may be a new wave of infection.https://doi.org/10.1007/s10273-020-2629-zE32E66F01 |
| spellingShingle | Oliver Holtemöller Stefan Kooths Claus Michelsen Torsten Schmidt Timo Wollmershäuser Economy in Shock — Financial Policy is Holding Up Wirtschaftsdienst E32 E66 F01 |
| title | Economy in Shock — Financial Policy is Holding Up |
| title_full | Economy in Shock — Financial Policy is Holding Up |
| title_fullStr | Economy in Shock — Financial Policy is Holding Up |
| title_full_unstemmed | Economy in Shock — Financial Policy is Holding Up |
| title_short | Economy in Shock — Financial Policy is Holding Up |
| title_sort | economy in shock financial policy is holding up |
| topic | E32 E66 F01 |
| url | https://doi.org/10.1007/s10273-020-2629-z |
| work_keys_str_mv | AT oliverholtemoller economyinshockfinancialpolicyisholdingup AT stefankooths economyinshockfinancialpolicyisholdingup AT clausmichelsen economyinshockfinancialpolicyisholdingup AT torstenschmidt economyinshockfinancialpolicyisholdingup AT timowollmershauser economyinshockfinancialpolicyisholdingup |