Germany’s economy could suffer a “serious setback” if the authorities decide to prolong the severe restrictive measures because of COVID-19. This follows a report from the German Central Bank.
“If the spread of the coronavirus cannot be significantly eased and the current restrictions affecting economic activity are maintained or tightened, it could result in a serious setback [for the country’s economy],” the Bundesbank said in a statement.
The central bank report also specifies that the German economy showed zero growth in the last three months of 2020, as a downturn in the hotel business and retail trade was offset by a rebound in industry and construction.
On Jan. 5, German authorities decided to extend the country’s strict quarantine until Jan. 31. Chancellor Angela Merkel urged all residents to reduce social contacts to an “absolute minimum. Previously the regime of strict restrictive measures was in force in Germany until January 10.
In September 2020, Germany was the only country in the eurozone to show stable economic growth. Growth in global trade is helping to recover from the pandemic and pulling Germany’s export-oriented economy through.