Berlin Federal Minister of Economics Peter Altmaier expects an economic upturn from October. “I am sure that we can stop the downturn in our economy after the summer break and that the economy in Germany will grow again from October at the latest,” said the CDU politician of the “Bild am Sonntag” according to the preliminary report. All in all, the German economy will shrink by six percent this year. Altmaier expects growth of over five percent again in the coming year.
The situation on the labor market will also ease towards the end of the year, said Altmaier. He assumes that the unemployment rate will peak as a result of the corona crisis by around October. “From November onwards, they can slowly decline again.” Altmaier stated that the goal was to return to the pre-crisis employment level by 2022.
Other parts of the economic stimulus package that should bring the idle economy back to life would soon be implemented, the economics minister announced. The increased environmental premium for electric cars will apply from July 8. Bridging aids for medium-sized companies could also be applied for from then on.
Most recently, the Ifo Institute had forecast a strong upswing in the German economy after the severe corona recession in the second half of the year. The Munich economists expect the German economic output to decrease by 6.7 percent in 2020 compared to 2019. The Ifo Institute then expects growth of 6.4 percent in 2021.
However, the United States could pose a threat to the global economy. The increasing number of new infections with the corona virus are of great concern to him, said Altmaier. “A pandemic that is getting out of control there has major consequences for the global economy.”
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