German Economics Ministry Says Corona Recovery Well Underway
The German government is projecting 4.4 percent growth for 2021, with the economy likely to return to pre-corona levels in early 2022.
Germany’s relative success in containing the coronavirus is paying economic dividends. That’s the conclusion the German government drew in its interim economic forecast, which was released on September 1. Government data shows that Germany had already gotten through the worst of the corona-related recession in May and has been on the upswing ever since.
“The economy’s recovery after the lockdown in the spring has commenced,” German Minister for Economic Affairs and Energy Peter Altmaier told reporters. “It underscores the strength and resilience of companies in Germany and their employees’ willingness to work hard. It shows that the government’s unprecedented emergency economic protection measures and its economic stimulus package, together worth over one trillion euros, are reaching people and businesses and are clearly providing impulses to get the economy back on the growth track.”
Altmaier said that his ministry expected the German economy to resume expansion in the third quarter of this year. He also noted encouraging signs in the labor market, where the number of people returning to full-time work has begun increasing.
“The road to recovery is still relatively long, but there are lots of reasons to be optimistic,” says Germany Trade & Invest CEO Robert Hermann. “The disruptions associated with corona have also opened a wide variety of opportunities in a host of sectors for companies, including foreign ones, which are nimble and innovative enough. They stand to profit as the German economy gradually returns to normal.”