The German Central Bank announced that the country’s economy could contract sharply in the first quarter as a result of strict restrictions applied to prevent the spread of the epidemic.
German Central Bank (Bundesbank), March report on the economy has been published.
The report said that the German economy could contract sharply in the first quarter as a result of strict restrictions applied to prevent the spread of the epidemic.
“Measures are tighter than the previous quarter”
The report said, “Measures to contain the epidemic are on average tighter in the current quarter compared to the previous quarter. Therefore, in the first quarter of 2021, economic production is likely to drop sharply, especially in service sectors where contact is intense,” the report said.
In the report, which pointed out that industrial production decreased due to supply problems in the automobile industry in January, it was noted that orders in the industry were strong and exports of goods increased.
In the report, which was stated that retail sales fell in January with the end of the VAT discounts, it was emphasized that the end of the said discounts also caused a significant decrease in the construction sector.
It was said that the economy will recover with the decrease in cases.
In its February report on the economy, the Bundesbank stated that the German economy will recover with the decrease in the number of cases in the spring and the acceleration of vaccination.