Germany’s economy is expected to shrink again in the current quarter as a new wave of coronavirus infections has prevented many people from going to work, the German central bank said on Monday, predicting a recovery during the Northern Hemisphere’s spring.
Europe’s biggest economy entered a contraction in the last three months of 2021 as its massive industrial sector was impacted by supply problems.
Such problems are now decreasing, but the rapid spread of the Ômicron variant is affecting services and employment in general.
“Unlike previous waves of the pandemic, it is not just activity in the service sector that is likely to be affected by containment measures (of the pandemic) and behavioral changes,” Germany’s central bank wrote in a monthly report.
“Instead, pandemic-related work absence is likely to decrease economic activity sharply in other sectors as well.”
The German central bank added that domestic industry is providing “a positive boost” to the economy thanks to reduced supply bottlenecks and high demand, setting the stage for a spring recovery should the pandemic subside.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
