Germany crisis: Angela Merkel hit by a nightmare as the economy shrinks by 1.7% – a major blow | World | news

According to the Federal Statistical Office, the German economy shrank by 1.7 percent from January to March due to the renewed lockdown. It did so after the country was forced to impose further restrictions as cases of the virus continued to rise.

Due to temporarily low tax rates in the second half of 2020, the economy grew slightly.

But these purchases are now reportedly missing from the consumption statistics for the first three months of the current year.

Overall, it can be expected that Europe’s largest economy will finally find its way back to growth from the second quarter of the year.

The reason for this is that more and more people are to be vaccinated against the pandemic.

For the full year 2021, the federal government forecast growth of 3.5 percent in its recently raised forecast.

Last year, German economic output slumped by 4.9 percent.

The state is trying to cushion the economic crisis with billions in aid.

This week, the German and French finance ministers called on the European Commission to approve their plans to stimulate the economy.

READ MORE: What are you doing? Germany throws away 40,000 important Covid vaccines

On Thursday, the German House of Lords passed a law that gives Ms. Merkel’s government more powers to combat a third wave of Covid.

The amendment to the Infection Protection Act allows the national government to impose curfews between 10:00 p.m. and 5:00 a.m., as well as restrict private gatherings, sports, and store openings.

Schools will close and return to online classes if the virus spread exceeds 165 cases per 100,000 population.

The law still requires the signature of Federal President Frank-Walter Steinmeier before it can come into force.

Ms. Merkel drafted the law after some of Germany’s 16 federal states refused to impose tough measures despite an increase in cases.

Several parties rejected the measures after the law was promulgated in the Bundestag.

Manuela Schwesig, the chairwoman of the northern state of Mecklenburg-Western Pomerania, said the change did not go far enough.

Other prime ministers in Germany shared their concerns about the emergency brake.

The emergency brake should last until June 30th.

In Germany, the number of cases has increased alarmingly, the total number of infections is now over three million.

More than 80,000 people have now died from the virus.

Doctors have warned that intensive care units may have difficulty dealing with this if no action is taken.