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German corporations assume that the restrictions on corona viruses will proceed till April

People in protective clothing are pictured while the body temperature of people crossing the German-Polish border will be checked in Görlitz on March 18, 2020.

Florian Gaertner | Photo library | Getty Images

German companies assume that the restrictions on public life caused by coronaviruses will persist on average for another 8.5 months, according to the closely followed Ifo Institute, as the increasing number of coronavirus infections in Germany gives cause for concern.

In the latest Ifo company survey in July, various sectors were asked how long they expected restrictions on public life, with service providers expecting restrictions of 8.9 months, trade-oriented companies with 8.6 months, construction work with 8.2 months and manufacturing companies with 7.8 months.

"Companies in the leisure sector in particular fear a longer period of restrictions: 13.0 months," said Ifo when the study was published on Monday, while those in the arts activities sector and those in restaurants and catering expect restrictive measures for 11 months.

The survey comes because European companies are looking to recover from the coronavirus pandemic amid concerns about rising numbers of infections in a number of countries in the region, including Germany.

The reproduction rate of the virus (defined as the average number of people infected by an infected person) rose in Germany to 1.16 on Friday, the highest level in 10 days. Germany estimates its R-rate using a four-day moving average and says the value reflects the infection situation one to two weeks ago.

The Robert Koch Institute (RKI), Germany's health authority, stated that there were many smaller cases of cancer nationwide in different administrative districts and in different settings, such as larger family events, leisure activities, work environments, but also in the community and in different institutions Outbreaks were health facilities. In addition, Covid-19 cases are increasingly being identified in people returning from trips abroad, the RKI said on Friday.

It warned that the increase in the number of reported Covid-19 cases in recent weeks was "very worrying". Another 5,271 new cases were reported in the last seven days, the RKI announced on Sunday.

"The number of new cases reported every day has increased since the 30th calendar week. This development is very worrying and will continue to be monitored very closely by the RKI. A further deterioration in the situation must be avoided," stated the RKI.

This will "only succeed if the entire population continues to campaign for a reduction in transmission, for example through consistent compliance with the rules for physical distancing and hygiene – also outdoors – by ventilating indoor areas and, where indicated, wearing one correctly Community or face mask. "It added.

Deutsche Bank economists said Monday that the rise in Covid-19 infection rates in Germany and elsewhere "is a problem, if not yet alarming."

"For seasonal reasons, we expect increased rates by spring 2021. We assume that a vaccine will be widespread by mid-2021, which creates a confidence boost for the last part of the year," said the economists led by Stefan Schneider in one Note.

Deutsche Bank economists now expect German GDP (gross domestic product) to shrink 6.4% in 2020 (compared to -9% forecast in early May), followed by a 4% increase in 2021 Still, pre-Covid production levels will not decline until mid-2022, they predicted, adding that the error rate is high.

"The current extraordinary volatility of monthly data and the further development of the global pandemic suggest that the error rates remain exceptionally high."

To date, Germany has recorded 217,288 coronavirus infections and 9,202 deaths, as data from Johns Hopkins University shows, a far lower number of deaths than many of its European counterparts.

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