The coronavirus pandemic will trigger a serious downturn in the German economy, European Central Bank (ECB) Governing Council member and Deutsche Bundesbank chief Jens Weidmann has said.
Recession in Germany is “now inevitable,” Weidmann told Die Welt newspaper in an interview published on Saturday.
When asked how bad the economic downturn will be, Weidemann said that all efforts first must be focused on stopping the spread on the coronavirus with steps such as social distancing. He also noted that “drastic measures” like curfew restrictions may be considered by the government.
The global economy took a hit as stock markets plummeted worldwide amid the ongoing Covid-19 pandemic. The stock markets in London and Berlin, however, showed signs of recovery on Friday when governments rolled out monetary and fiscal support programs.
Earlier this week, the ECB unveiled a €750-billion ($806-billion) emergency aid package to help the economy stay afloat during the outbreak as many businesses are being forced to shut down their operations.
The number of coronavirus cases has passed 19,000 in Germany in recent days, with 68 people dead.
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