Upswing after Corona slump: Government expects up to four percent growth

With falling incidences and progress in vaccination, economic forecasts are brightening. Economics Minister Peter Altmaier expects the German economy to grow by up to four percent this year. Germany has the Better through recession than expected by many, said the CDU politician.

Since the beginning of the pandemic in spring 2020, the state has invested a total of 300 billion euros in order to mitigate the downturn. Thanks to this "unprecedented joint effort" it was possible to avert serious damage to the domestic economy. Hundreds of thousands, probably up to a million, jobs have been secured.

Altmaier advocated extending the Corona economic aid for needy companies beyond June 30, if possible until the end of the year. "There will be companies that will still not be able to fully open up, there will be companies whose sales will not pick up again immediately." There will therefore still be help for companies that can demonstrate a drop in sales of at least 30 percent.

It is still unclear whether the corona aid will be extended to the end of September or the end of December, Altmaier added. "Personally, I think it would be wiser to do this extension until the end of the year in order to keep the debate out of the federal election campaign."

When deciding on an extension of the aid, he is relying on a final agreement with the coalition partner SPD in the coming week. Abuse is excluded, he emphasized. The applicant companies would have to provide concrete evidence of their sales losses.

Companies had criticized the slow payment of the aid from their point of view. Altmaier now referred to in this context Fraud allegations against rapid test providers. This shows »how sensitive and dangerous that can be. And that's exactly what we prevented with the economic aid, ”said Altmaier in the ZDF morning magazine.

With the aid measures, one always had to make sure that this money was not fraudulently used for purposes other than intended and that companies without a claim to it did not apply for it. "That's why it took a few weeks at the beginning."