Restricted trade and purchasing opportunities and the reluctance of unsettled consumers and investors represent a demand shock. Policymakers have addressed these multiple challenges with broad-based and comprehensive fiscal packages. These have accompanied the recovery in Germany through the summer of 2020. Since the autumn of 2020, a further and stronger wave of infection has led to renewed adverse effects on the German economy. In addition to these short-term burdens, it also becomes clear that the pandemic will have a variety of long-term effects. These can be identified by their impact on macroeconomic production factors. There will be positive experiences – such as a technology and digitization boost triggered by the pandemic. However, there is also a risk that structural unemployment may arise. To avoid this, it is essential to ensure an inclusive access to the labor market and to the education system.
The German economy and the Corona shock An acceleration of structural changes?
The Corona pandemic is a huge shock for the whole world both socially and economically . The supply side of the economy is impacted via disrupted value chains due to a lack of employees and supplies.
- Michael Grömling in BSR Policy Briefing series ·
- Externe Veröffentlichung ·
- 10. März 2021