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.

The German economy and the Corona shock: An acceleration of structural changes?
Artikel im BSR Policy Briefing
Institut der deutschen Wirtschaft (IW)
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.
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.

Michael Grömling: The German economy and the Corona shock – An acceleration of structural changes?
Artikel im BSR Policy Briefing
Institut der deutschen Wirtschaft (IW)

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