Leading German economist says recovery in danger from infection wave

Rising coronavirus infection figures are endangering the economic recovery in Germany, according to leading economic research institute ifo.

“The spread of infections is causing economic activity in the sectors of social consumption – in other words gastronomy, travel, culture and events – to decline because people want to avoid the risk of infection,” ifo head Clemens Fuest told the Passauer Neue Presse newspaper on Wednesday.

Fuest said that to a large extent in this wave it was not lockdown measures that were causing economic damage, but the pandemic itself.

“When the risk of infection is high, most people don’t go to restaurants or events, whether they are closed by government regulations or not.”

This applied even though – unlike last winter – many people are now vaccinated, even if the vaccinations do not provide perfect protection, he said.

Ahead of a crucial meeting of state ministers and the federal government on Thursday, Fuest spoke out in favour of containing the outbreak using regulations that give certain freedoms to only vaccinated and recovered people.

Those who do not get vaccinated without good reason also put others at risk, he argued: “Politicians must increase the pressure here, even if there is controversy.”

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