German Economy and Facing Repercussions of Coronavirus

Summary

Economic data prior to the outbreak of the Covid-19 Pandemic indicates that the German economy is going in a direction opposite to the growth spurt that it has achieved over ten years. These declines come as a result of a number of reasons, most notably the global crisis in the auto industry, in addition to Britain’s likely exit from the European Union without an agreement, which is closer to reality. Added to this are the recent developments in Hong Kong Island, amid Chinese threats, in addition to the US-China trade war. Then, the Covid-19 repercussions fueled these declines, while the closure procedures aimed at containing the emerging Coronavirus exhausted the European economy in general, the German economy in particular.

The paper attempts to identify the most significant repercussions caused by the outbreak of Covid-19 on the German economy. It also addresses the most important economic policies that the German government has followed to confront these repercussions.