Monday 29 November 2021
“Unvaccinated people set the pace”
IW calls for quick clarification on compulsory vaccinations
Will there be a general compulsory vaccination? Neither the executive nor the future government wants to commit to this at the moment. The stop-and-go must come to an end, says the Institut der Deutschen Wirtschaft. The number of vaccinations must urgently increase – also to fuel the economy.
The German Economic Institute (IW), which is close to the employer, is urging politicians to make a quick decision on compulsory vaccination. “The executive government and the traffic light coalition should clarify as soon as possible whether and to what extent a mandatory vaccination is possible,” demanded IW director Michael Hüther.
Advances in vaccination are a prerequisite for strong growth in the German economy in the coming year. The constant stop-and-go of economic life must “finally come to an end” in 2022, demanded Hüther. It is essential to avoid renewed lockdowns. The solution lies in rapid vaccination progress – “the number of first vaccinations must increase and re-vaccinations run effectively,” said Hüther. “The small group of unvaccinated people is currently setting the pace in Germany,” criticized the IW director.
“We accept that other freedoms will have to be massively restricted again. That is not acceptable.” The pandemic and the associated transport and production problems “continue to” burden the economy. According to IW estimates, gross domestic product (GDP) will increase by 2.5 percent in the current year. In the coming year – with rapid vaccination advances – the economy will grow by 4.0 percent.
According to IW, the inflation rate will reach around 3.0 percent this year, also because of the companies’ high production costs. In the coming year, according to the economic researchers, it will drop to just under 2.5 percent. The problems on the labor market “should be overcome in the coming year,” declared the IW. There are many indications that the number of people in employment will even exceed the pre-crisis level. The unemployment rate is expected to decrease from 5.75 to 5.25 percent.