One Year of Coronavirus Crisis: Current Economic Situation and the NoCovid Strategy

One year of Coronavirus: Review and Outlook

Covid-19 has already been dominating life in Germany for more than a year. The economy also felt the consequences of the pandemic: closures in the retail and catering sectors, among others, were imposed by politicians as measures to contain the pandemic.

In his lecture, ifo President Prof. Clemens Fuest has provided a review and outlook on the Coronavirus crisis and addressed the following questions:

• How has the economy come through the crisis so far?
• What are the prospects?
• What are the different approaches to getting a grip on the crisis? Incidence orientation or better individual regional measures?

General Information on the Debate

The debate was conducted in German and took place as an online event.

The event was part of the series October 2020 till March 2021:

„The New World (Dis)order – How Business and Politics Can Build a Post-pandemic New Normal“

The aftermath of the coronavirus pandemic is enormous, not only in health terms but also economically and politically. How can a sustainable recovery from its effects be achieved? To answer this question, different perspectives must be taken: The crisis has fueled geopolitical changes, e.g. in the power relations between the EU, USA and China, which have already begun. What new alliances are emerging and what is breaking up? The crisis could also be a catalyst for questioning and realigning traditional industrial structures. Who is losing? Who is benefiting? For the governments of the affected states, the rescue measures have cost a lot of money. High levels of national debt are therefore fuelling concerns that taxes will have to be raised and state benefits cut in the future. What does this mean for prosperity? The coronavirus pandemic has also significantly impaired efforts to provide education and training, especially for young people – and may redistribute income and wealth now and in the future. We are moreover seeing how the crisis is accelerating the digitalisation of the economy. This will change the way we work. How can we counteract risks and make the best possible use of opportunities?