Europe Confronts Second Wave of Coronavirus
Economists are warning that the second coronavirus lockdown has increased the risk of another recession in Europe’s largest economy.
Europe Confronts Second Wave of Coronavirus
Soeren Kern | Gatestone Institute | December 16, 2020
The German government has reimposed strict lockdown measures in an effort to reverse a spike in Covid-19 infections. Beginning on December 16, all non-essential shops and businesses, as well as all schools and daycare centers, will be closed until at least January 10.
The new restrictions, which were agreed upon after talks between German Chancellor Angela Merkel and the leaders of Germany’s 16 federal states, come after less intrusive lockdown measures that began on November 2 failed to significantly bring down the number of infections.
On December 11, Germany recorded 29,875 new coronavirus cases, a one-day record, according to the Robert Koch Institute (RKI) for infectious diseases. Germany’s intensive care unit capacity — the most important measure of a health system’s ability to deal with the pandemic — is at a critical level, with only 5% to 10% of intensive care beds available in some parts of the country, according to the Association of Critical Care and Emergency Medicine (DIVI).
Economists are warning that the second coronavirus lockdown has increased the risk of another recession in Europe’s largest economy. Germany suffered its worst economic contraction since World War II after the first wave of coronavirus infections pushed down gross domestic product by 1.7% in the first quarter and by an unprecedented 9.8% in the second quarter. The economy rebounded by a stronger-than-expected 8.5% in the third quarter due to higher consumer spending and booming exports.
