German retail prices have taken a hit as the lockdown continues to put a strain on the nation's industry and services sector as a withdrawal of temporary sales tax hit consumer spending, according to government statistics.
The Federal Statistics Office said retail sales fell 4.5% for January following a 9.1% decline in September as the lockdown, originally placed for the Christmas period, was extended owing to a spike in cases.
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An office spokesperson said: “This decline can be explained by the ongoing coronavirus lockdown, which meant a closure of many retail stores since December 16 2020."
German Chancellor Angela Merkel has been facing mounting pressure to open up the nation owing to these declines as finance minister Olaf Scholz became the latest official to call for the easing of lockdown restrictions.
Newer strains of the virus have caused cases to continue to rise, placing total infections significantly above the targets set by the chancellor for the easing of restrictions.
In an interview with German tabloid Bind, Scholz said: "Increased testing must have an impact on what is possible in terms of moves to open up. It’s not going to happen all at once, but there must be a step-by-step process that everyone can understand.”
The minister suggested introducing Covid testing in the workplace in order for them to deal with cases and isolation on a case-by-case basis.
Cases peaked shortly after Christmas, but a downward trend has recently reversed and there is a worry cases could rise exponentially with the newer strains.
Lockdown measured are set to continue until at least the end of the month, as board members and Merkel are set to convene on the matter later this week. Non-essential stores and other facilities, such as gyms, cultural venues and restaurants are set to remain closed while these measures are in place.
At the same time, officials are reportedly looking into easing the incidence rate measuring of determining cases in order to allow for businesses to slowly reopen.
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A meeting with state leaders is due to happen on Wednesday, which will determine the future of lockdown restrictions in Germany.
It is unlikely its economy - which still remains the largest in Europe - will be able to properly bounce back until restrictions are eased.
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