TV interview with Volker Wieland on the economic consequences of the Coronavirus lockdown (Hessenschau)

Prof. Volker Wieland sees the renewed extension of the Corona measures for economic development as justifiable. "The economy has been hit hard this quarter, but it's not as bad as last year," he said in an interview on the television program "Hessenschau." He expects the economy to recover with the end of the lockdown. The important thing, he said, is to avoid a third wave of infections.

Wieland expects the debt ratio to rise to 70 percent in the corona crisis. "That is manageable, we can reduce that again". During the financial crisis, he said, the debt-to-GDP ratio climbed from 60 to 80 percent and then fell back to 60 percent within ten years. However, the current low interest rate environment cannot be expected to persist, Wieland warned. "The government should make sure that spending does not rise as fast as growth in the future so that we can grow out of this debt".

Restrictions in industries such as restaurants, hotels and entertainment will have a manageable impact, Wieland said, because they account for only 8 percent of value added. "Work in industry and construction continues. Therefore, the slump will not be quite so dramatic".

Interview with Prof. Volker Wieland in "Hessenschau"
(7:00 to 11:30 min)