Crisis Resulted in Loss of One Million Work Opportunities, According to Economist
In an insightful statement, Stefan Kooths from the Kiel Institute for the World Economy (IfW) has warned that while Germany is currently undergoing a recovery process, the COVID-19 crisis is far from over. According to Kooths, the next federal government will not have the freedom to spend money freely but will be tasked with balancing the budget.
The pandemic has taken a significant toll on Germany's economy, with Kooths estimating that approximately one million jobs have been lost. However, he predicts a "conjuncture recovery process" for the second and third quarters of 2021, returning the country to pre-crisis levels.
This recovery, however, comes with its own challenges. Kooths expects a state deficit of 40 billion euros, a figure that the next federal government will need to address. He also anticipates consolidation to be on the agenda starting from 2022.
While specific figures for Germany's projected state deficit for 2022 and subsequent years, attributed to Kooths, are not available in the search results, it is known that Kooths and the Kiel Institute have publicly addressed Germany’s fiscal outlook, including deficit projections, especially in light of economic challenges such as the COVID-19 pandemic and energy crisis impacts.
A photo from the German Employment Office, as reported by dts Nachrichtenagentur, accompanies this article. For exact deficit projections attributed to Stefan Kooths, a direct source such as a Kiel Institute report, press release, or an article quoting him would be necessary.
As we move forward, it is clear that the next federal government will have a challenging task ahead in managing Germany's economy while addressing the deficit and ensuring a sustainable recovery.
The next federal government will need to address the projected state deficit of 40 billion euros, an issue arising from Germany's economic and social policy, particularly finance and business sectors, as the country recovers from the COVID-19 crisis. Consolidation of the budget will likely be a priority starting from 2022, with the aim of ensuring a sustainable recovery for the nation.
