Germany's Economy Is Sicker Than You Think
Epidemiologically and economically, Germany did well in round one of the pandemic. The problems will show up in round two.
Just look at that V shape.
Photographer: Bernd von Jutrczenka/dpa/picture alliance via Getty Images
There’s no question that Germany has done relatively well during this annus horribilis, and that the administration of Chancellor Angela Merkel deserves most of the credit. But the country could soon have a different problem. The same government policies that worked so well in the first phase of the corona-recession could do major damage in the second phase and thereafter.
Germany can certainly be proud of what it has achieved this year. It “flattened the curve” of Covid-19 transmission early on. And with a dizzying array of stimulus spending and other measures, it has pumped some 1 trillion euros ($1.18 trillion) into its economy.