Schools and nonessential shops were closed on Dec. 16, and the restrictions were extended last week until Feb. 14. Although cases are now falling, authorities are worried about the potential impact of new virus variants such as the one first detected in Britain.
The German economy, Europe’s largest, shrank by 5% last year, ending a decade of growth. That was still a smaller drop than many had expected.
Ifo’s survey is based on monthly responses from about 9,000 companies.