World famous for its traveling destinations, Germany derives its national revenue from aviation, healthcare, food and beverages, automobile, retail, e-commerce, energy, IT & telecom and major other industry verticals. These market determinants were stimulating the German economy and the country was witnessing a fair rate of growth until the COVID-19 was not into the picture. But as soon as the virus entered the domestic borders, the GDP downfall has traumatized the Germany’s economy. Germany, which has the world’s fifth-largest number of coronavirus cases, has far fewer deaths from disease as compared to other major countries of the world, including China, Italy, the United States, and other countries. Talking about the prevalent stats, there were total 184,923 cases registered in Germany till 5th June 2020 as per worldometer.
Most of the companies, as a result of the COVID-19 epidemic, have to close the maximum number of stores in Germany. Due to the closure of all the shops, malls, and similar social areas, the companies are suffering a huge loss in their respective revenues. Conversely, due to the unprecedented demand for personal protective equipment (PPE) in Germany, the German government and manufacturers are taking some important steps to develop and simultaneously adopt more PPEs. Along with this, the government is focusing on developing vaccines for the treatment of COVID-19. For example, German-based company BioNTech, along with Pfizer, fell into the drug development platform to find a vaccine against COVID-19. With an unprecedented response, the German government has ensured a lot of liquidity support for all companies, from small to large multinationals.
The government provides loans to all countries to maintain the economy. KfW, the largest German national development bank in Europe, can spend around 5 trillion euros to support the national economy. It also plans to increase borrowing by about $160 billion by 2020. Similar to other European countries, the country has taken several steps to prevent and control the spread of the disease. However, the impact of the COVID-19 epidemic is still facing economic downturn. It has affected the country’s overall production capacity, with concerns about slowing global demand and availability of raw materials. As a result, various manufacturing companies in the country have temporarily suspended their operations. Germany has agreed to a fresh stimulus package worth $146 billion (€130 billion), which is much higher than expected on Wednesday, 3rd June 20202, a few days after Europe announced its own blueprint of $826 billion
