Federal Minister of Economic Affairs and Energy, Mr Peter Altmaier

Federal Minister of Economic Affairs and Energy, Mr Peter Altmaier

© BMWi/Susanne Eriksson

Federal Minister for Economic Affairs and Energy, Mr Peter Altmaier, commented today on the economic effects of the corona pandemic: “We are dealing with a pandemic that is affecting the global economy. Many supply chains around the world are broken. Important preliminary products, which we need to produce other goods, are not arriving in Germany. Many export goods that we produce for other countries cannot be purchased at the moment. Foreign demand has nose-dived in many areas. Domestic consumption, which has always been the pillar of our economic development in recent years, is limited or has come to a standstill in many areas. Much now depends on how long the measures will continue.

We can expect massive falls in economic growth this year. We will probably reach the peak of these falls in May. For certain months in the first half of the year, we expect economic growth might nose-dive by more than 8%. I have good reason to hope that events will return to normal in the course of the year. In all probability, the decline for the year as a whole will be at least as severe as that seen during the financial crisis in 2009. At that time, our economy shrank by just over 5% in one year. We can expect this figure can not only be reached, but also exceeded.

After 10 years of economic growth, we will have a recession again this year. It needs to be ensured that this recession is temporary. That is why we have put together large aid packages in a very short space of time, worth unprecedented amounts. The programmes have got off to a good start and money is already being disbursed.

Once the corona pandemic is over, we want to get back on track quickly so that wages can rise again and the economy can grow again. Not only will the aid packages help, but we will also need a fitness regime for the economy. This is what we in the Federal Government are working on.”

Minister Altmaier will offer a comprehensive projection when he presents the Federal Government’s spring projection on 29 April.

The full statement made by Federal Minister Altmaier von can be found here (in German).