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ECONOMY

Coronavirus: German industry fears ‘longest recession’ since reunification

The economic upheaval caused by the fast-spreading coronavirus threatens to plunge Germany's crucial industrial sector into "the longest recession since reunification", a powerful industry body said Thursday.

Published: 5 March 2020 12:57 CET
Coronavirus: German industry fears 'longest recession' since reunification
A German and EU flag stands between construction cranes in Berlin. Photo: DPA

Germany's export-reliant industrial sector is already in the midst of a recession, with car manufacturers especially feeling the pain from months of China-US trade tensions and Brexit uncertainty.

As the deadly coronavirus wreaks havoc on international supply chains and saps consumer demand, Germany's BDI industry federation said worse was to come.

READ ALSO: German economy is 'down on its knees': Is a recession looming?

“German industry is facing the longest recession since reunification” of the country in 1990, BDI said in a quarterly report.

The sector, a key growth driver in Europe's top economy, has already seen six consecutive quarters of shrinkage.

In the final quarter of 2019, German industrial production fell by 5.7 percent year-on-year.

The BDI said the combined effects of weak global growth, increased uncertainty and factory disruptions were having “a negative effect” on companies' willingness to spend money and invest.

The entrance to the Hannover Messe, a world famous tech fair which was cancelled on Wednesday over coronavirus fears. Photo: DPA

The industry body now expects the German economy as a whole to grow by just 0.5 percent in 2020, compared to 1.1 percent growth forecast by the government in January before the virus spread across the world.

The BDI urged the German government to use its fat budget surpluses to support affected industries and encourage investment.

READ ALSO: Germany debates how to spend fat budget surplus

Berlin must “swiftly” take action “to adequately respond to the crisis”, it said.

It added that it welcomed recent indications from Berlin suggesting that Chancellor Angela Merkel's government stood ready to support the German economy.

Finance Minister Olaf Scholz last week said the government had the means to “launch a fiscal stimulus package” if the situation worsened.

Highlighting the bleak outlook, German car parts maker Continental on Thursday said it expected car production worldwide to fall by two to five percent in 2020, partly because of the huge impact of the coronavirus on China.

READ ALSO: German car parts giant Continental to cut 5,500 jobs

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HEALTH

Could there be a new wave of Covid-19 in Germany this autumn?

It’s back again: amid sinking temperatures, the incidence of Covid-19 has been slowly rising in Germany. But is this enough to merit worrying about the virus?

Published: 20 September 2023 12:05 CEST
Updated: 20 September 2023 22:22 CEST
Could there be a new wave of Covid-19 in Germany this autumn?

More people donning face masks in supermarkets, friends cancelling plans last minute due to getting sick with Covid-19. We might have seen some of those familiar reminders recently that the coronavirus is still around, but could there really be a resurgence of the virus like we experienced during the pandemic years?

According to virologists, the answer seems to be ‘maybe’: since July, the number of people newly infected with Covid-19 has been slowly rising from a very low level.

According to the Robert Koch Institute (RKI), nine people per 100,000 inhabitants became newly infected in Germany last week. A year ago, there were only around 270 reported cases.

Various Corona variants are currently on the loose in the country. According to the RKI,  the EG.5 (also called Eris) and XBB.1.16 lines were each detected in the week ending September 3rd with a share of just under 23 percent. 

The highly mutated variant BA.2.86 (Pirola), which is currently under observation by the World Health Organisation (WHO), also arrived in the country this week, according to RKI. 

High number of unreported case

The RKI epidemiologists also warned about a high number of unreported cases since hardly any testing is done. They pointed out that almost half of all registered sewage treatment plants report an increasing viral load in wastewater tests.

The number of hospital admissions has also increased slightly, but are still a far cry from the occupation rate amid the pandemic. Last week it was two per 100,000 inhabitants. In the intensive care units, only 1.2 percent of all beds are occupied by Covid-19 patients.

Still, a good three-quarters (76.4 percent) of people in Germany have been vaccinated at least twice and thus have basic immunity, reported RKI. 

Since Monday, doctors’ offices have been vaccinating with the adapted vaccine from Biontech/Pfizer, available to anyone over 12 years old, with a vaccine for small children set to be released the following week and one for those between 5 and 11 to come out October 2nd.

But Health Minister Karl Lauterbach has so far only recommended that people over 60 and those with pre-existing conditions get vaccinated.

READ ALSO: EXPLAINED: Who should get a Covid jab this autumn in Germany?

“The pandemic is over, the virus remains,” he said. “We cannot predict the course of coming waves of corona, but it is clear that older people and people with pre-existing conditions remain at higher risk of becoming severely ill from Covid-19”

The RKI also recommended that people with a cold voluntarily wear a mask. Anyone exhibiting cough, cold, sore throat or other symptoms of a respiratory illness should voluntarily stay at home for three to five days and take regular corona self-tests. 

However, further measures such as contact restrictions are not necessary, he said.

One of many diseases

As of this autumn, Covid-19 could be one of many respiratory diseases. As with influenza, there are no longer absolute infection figures for coronavirus.

Saarbrücken pharmacist Thorsten Lehr told German broadcaster ZDF that self-protection through vaccinations, wearing a mask and getting tested when symptoms appear are prerequisites for surviving the Covid autumn well. 

Only a new, more aggressive mutation could completely turn the game around, he added.

On April 7th of this year, Germany removed the last of its over two-year long coronavirus restrictions, including mask-wearing in some public places.

READ ALSO: German doctors recommend Covid-19 self-tests amid new variant

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