LOCKDOWN HAS A PRICE: German economy to cost more than 19 billion euros

SARAJevo, (Patira) - New quarantine measures that come into effect in Germany today will cost the country's economy around 19.3 billion euros, the newspaper Welt am Sonntag announced, citing calculations by the Berlin Institute for Economic Research (DIW).

According to DIW's forecasts, restaurateurs could lose the most during the one-month lockdown - around 5.8 billion EUR.

The entertainment industry, sports and cultural institutions will lose 2.1 billion EUR, retail will cost 1.3 billion EUR from this year's second "lockdown", and industry will lose 5.2 billion EUR, SEEbiz reports.

Losses are also expected in the service and logistics sectors.

However, DIW is convinced that the German economy will begin to recover next year, but only with effective control of the spread of the coronavirus.

The German government is prepared to compensate companies for a significant portion of the expected turnover for November. For small companies with up to 50 employees, the state will compensate 50 percent of turnover, and for larger ones, 70 percent.

Chancellor Angela Merkel previously said that the authorities would not leave the economy in trouble and agreed on measures totaling up to ten billion EUR to provide them with financial support.

Starting today, Germany is introducing new restrictions in public life for at least a month to curb the spread of the coronavirus. Restaurants, bars and other catering facilities will be closed, but will be able to sell food and drinks to go. Fitness clubs, tattoo parlors, swimming pools, beauty and massage studios, theaters, cinemas, and concert halls will cease operations. All football Bundesliga matches will be held in November without spectators.

Unlike the spring quarantine, kindergartens, schools, hairdressers, and shops will remain open, but subject to hygiene and epidemiological measures.