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The president of the economic research institute DIW in Germany expects dire economic consequences and a wave of bankruptcies from the second epidemic in Germany, reports MTI.
The longer the shutdown lasts, the more businesses will be constrained and the more they will be forced to file for bankruptcy.
– He said Marcel Fratzscher, president of DIW (Deutschen Instituts für Wirtschaftsforschung), an economic research institute in Berlin, in an interview with the Augsburger Allgemeine. In his opinion, the second short circuit will have more serious consequences than expected. “The question is not whether there will be a wave of bankruptcies, but when,” he said. Adding that bankruptcies will also increase unemployment.
According to him, “the situation in the labor market is worse than the statistics show.” Last year, about 600,000 employees who paid social security contributions lost their jobs. In addition, there are around 850,000 mini-jobs who cannot claim unemployment benefits or part-time work benefits. The two and a half million freelancers also suffered heavy losses.
Featured Image: The toy pandas are sitting at the tables of the closed PINO restaurant in Frankfurt on November 25, 2020. Due to restrictions imposed for four weeks starting on November 2 due to the coronavirus epidemic, restaurants are closed in Germany. MTI / EPA / Ronald Wittek
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