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Institute: Coronavirus has caused huge economic damage in Germany

The coronavirus pandemic has caused huge economic damage in the past two years in Germany.

Berlin, 23 January 2022 (dpa/MIA) – The coronavirus pandemic has caused huge economic damage in the past two years in Germany.

The Institute of the German Economy (IW) in Cologne concludes in an analysis that the loss of value added is around 350 billion euros (400 billion dollars).

A large part of this is due to losses in private consumption, among other things because of lockdown measures.

Even if the gross domestic product (GDP) were to return to the pre-crisis level by the end of 2022, there would still be a “striking gap” in economic output compared to that if the pandemic had not occurred, according to a short IW report made available to dpa.

“Only with strong economic growth in the next few years can the gaps in value added and income resulting from the pandemic be closed bit by bit,” the report said.

The federal government expects weaker economic growth in Germany this year. As dpa learned from government sources on Friday, the government now still expects GDP growth of 3.6 per cent. In autumn, the previous government had still assumed 4.1 per cent growth this year.

The forecast is part of the annual economic report, which is due to be approved by the Cabinet on Wednesday.

In 2021, the German economy grew by 2.7 per cent after the slump in 2020. However, the GDP increase reported by the Federal Statistical Office on the basis of initial figures was lower than long hoped for.

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