Germany has slashed its GDP growth forecast for Q4 2020 by 3% on Wednesday as a result of the effects the holiday lockdowns and the greater coronavirus pandemic have had on its economy.
Germany
This comes as Chancellor Angela Merkel concurred with her government to extend the national lockdowns put in place in November have been extended until at least mid-February.
The German economy had previously been forecast to shrink in the fourth quarter, according to Munich-based Ifo.
Read more: German economy expected to shrink in fourth quarter
The new lockdown rules include stricter rules on face coverings, and schools, gyms and many shops will remain closed.
Germany's economy was previously predicted to grow by 4.4% in an internal forecast in autumn.
This temporary drop may be on its way out, according to officials.
Economic minister Peter Altmaier has said the number of new cases is beginning to plateau.
He told DW that industry was still performing well but had suffered under the recent lockdowns and that they are doing everything they can to ensure a positive economic upturn in the future.
He added that since the pandemic took hold, the German government have successfully managed to maintain the economy and preserve jobs.
The restrictions put in place in November were initiated to tackle a spike in cases during the summer and autumn.
While cases are flattening, possible new strains of the virus have officials worried it could cause another surge in cases.
Read more: Germany mulls stopping air travel due to Covid mutations
These new cases have yet to be fully tested regarding vaccine efficacy, although several key players are currently testing and developing updated vaccines to deal with them.
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