German economy taking hit from lockdown measures in November: ministry

FILE PHOTO: The skyline with its banking district is photographed in Frankfurt, Germany, January 7, 2020. REUTERS/Kai Pfaffenbach

BERLIN (Reuters) – Germany’s economic recovery continued until October but has slowed since August, the Economy Ministry said on Friday, adding that lockdown measures implemented to slow the spread of the coronavirus hit the economy in November.

The ministry said it did not look like the recovery would end in the fourth quarter though, as long as restrictions remain limited.

The German government’s council of economic advisers on Wednesday said it expected Europe’s largest economy to shrink less than initially feared this year thanks to a strong summer, but a second wave of the COVID-19 pandemic was clouding the growth outlook for 2021.

Insolvency applications from companies in Germany dropped by 35.4% in August year-on-year, the Federal Statistics Office said on Friday, adding that the drop was mainly due to a temporary suspension of obligations to file for insolvency from March, not reflecting the hardship many companies are facing due to the pandemic.

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