Germany: 2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Germany

IMF Staff Country Reports, January 19, 2021

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Canonical URL: Germany: 2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Germany

Germany managed the first wave of the COVID-19 epidemic relatively well thanks to an early and vigorous public health response.
Unprecedented disruptions to economic and social activity caused a deep recession in the first half of 2020.
The gradual easing of containment measures since late-April led to a partial revival of growth.
In late-October a “lockdown light” was announced to counter a new wave of infections, and restrictions were further tightened in mid-December.
Significant risks remain about the pace and extent of the recovery as the uncertain course of the epidemic continues to impact economic activity.

Public health response:
- Early and vigorous measures contributed to managing the first wave of the epidemic relatively well.
Economic impact:
- The first half of 2020 experienced a deep recession driven by unprecedented disruptions to economic and social activity.
- Partial revival of growth followed easing of containment measures beginning late-April.
Policy environment and containment measures:
- Late-October: “lockdown light” announced in response to a new wave of infections.
- Mid-December: restrictions were further tightened.
Risks and outlook:
- The uncertain course of the epidemic continues to pose significant risks to the pace and extent of the recovery.

Subjects: Commercial banks, Cooperative banks, COVID-19, Labor markets, Loans
Keywords: CR, EU recovery package, health crisis, IMF staff calculation, ISCR, money market rate, policy support package