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German economy loses €19 billion over second quarantine

The German economy will lose about 19.3 billion euros from the second quarantine, Die Welt reports, citing calculations by the German Institute for Economic Research. The biggest losses await the industrial sector, restaurant and hospitality, Focus reports.
The sport, culture and entertainment industry will lose around €2.1 billion, the commercial sector €1.3 billion. As for the German industry, its losses should amount to 5.2 billion euros. Also, serious losses will suffer logistics companies, the film industry and performers.

The second quarantine will not affect the labor market so hard, the newspaper said. According to the forecast of the institute, the number of unemployed in the fourth quarter will increase by 100 thousand people: by comparison, during the first quarantine the unemployment rate in the country increased by 630 thousand people. By the end of the year, the number of people employed part-time will increase by 400 thousand and reach 3.2 million.

At the same time in 2021 The German Institute for Economic Research expects a dynamic economic recovery, writes Die Welt. Next year, the GDP of FRG should rise substantially again. At the same time, however, the level of business failures and unemployment will rise.


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