Corona: Germany Inspires Cautious Optimism
Experts from a variety of institutes and other sources see positive signs concerning both Germany’s response to the coronavirus crisis and the effect that it will have on the country’s economy.
Online magazine Bloomberg Economics, for instance, concludes that, based on data concerning power usage and street traffic, “the blow to Germany’s economy has been smaller than in France, Italy and Spain and less even than Austria in the earlier weeks of lockdowns.”
Meanwhile, German financial newspaper Handelsblatt cites a study by PricewaterhouseCoopers (PwC) that found a 26 percent decrease from March to April in the number of German CFOs who thought their businesses would be severely affected by the crisis.
The German government is also earning good marks for its handling of the pandemic. PwC Germany Management Board Chairman Ulrich Störk told the newspaper, “Compared with other countries like the US, UK and Japan, action here is taken quickly, consistently and transparently.”
That assessment is supported by the British think-tank Deep Knowledge Group (DKG). In a study this month, DKG ranked Germany the most secure and stable country in Europe during the coronavirus crisis and second only to Israel among countries throughout the world.
Germany has begun easing some of the restrictions on public and economic life, although authorities caution that the crisis is far from over. The relative effectiveness of the country’s response to challenges of the coronavirus also makes Germany Trade & Invest Managing Director of Investor Consulting Achim Hartig optimistic concerning the future.
“Without doubt, the crisis will impact the growth and output of all economies affected, including Germany’s,” says Hartig. “But we already have to start looking beyond it. Germany’s economic structure is not going to be significantly different after the crisis.”