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Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts

08 December 2020

Coronavirus DK: Second wave takes its toll on social activity

Yesterday, Monday, December 7, the Danish government announced a new set of restrictions for the capital region and the two other largest cities. It was the day that the restrictions announced last week took effect and also the first day with more than 2,000 new infections. The State Serum Institute had presented a projection (DK) showing that, if nothing were done, the healthcare system could come under pressure before Christmas, with more than 4,000 daily infections and 500 hospitalizations. Increasing the tracing activity wouldn’t be sufficient to stop the spread from accelerating. The situation could be worse than in the spring, the report said, since there could be a shortage of healthcare staff because of a greater emphasis on quarantining people who are exposed to the virus. 

Back to takeout for urban eateries. Photo: Oscar Scott Carl © Scanpix.

These are the latest measures (DK), which apply from Wednesday, December 9, to January 3:

  • Thirty-eight municipalities, with a total of 2.8 million residents – almost half the country – will be partially locked down.
  • Restaurants and bars may not serve guests; they can offer takeout.
  • Theaters, concert halls, museums, libraries and other public buildings are closed.
  • Schools and universities from the fifth grade upwards must operate online; daycare centers will stay open.
  • Civil servants are to work at home as much as possible.
  • Indoor sports and other recreational activities are closed; professional sports events can continue, with a limit of 500 spectators.
  • People in the affected municipalities should comply with these restrictions generally and not travel to other regions in order to participate in the banned activities.
  • Families should limit Christmas gatherings to ten people.

The usual debate
Two virologists who have often been consulted about the pandemic disagree about the decision (DK). Søren Riis Paludan from Aarhus University thinks that the government should have waited to implement the restrictions until December 20, when the country normally closes down partially for the holidays, because of the high costs for education and the economy. 

On the other hand, Allan Randrup Thomsen of the University of Copenhagen says the new restrictions should have been included in the policies announced last week. He believes that recent half-measures such as closing bars and restaurants at 10 p.m. have not worked because people simply adjust their behavior, by going out earlier, for example. The researchers do agree, however, that Christmas traditions pose an increased threat of infection and that the course of the pandemic depends on people taking responsibility themselves for minimizing the dangers. 

Good news for country inns
Economists are sounding the alarm (DK) that, because of the new measures, business activity will get off to a slow start in 2021, when it was supposed to recover. Jeppe Juul Borre from Arbejdernes Landsbank notes that 60 percent of the country’s hospitality industry, which has already been the hardest hit by the pandemic, lies in the affected municipalities. He has reduced his GDP estimate for this year and warns that unemployment could rebound after falling over the summer.

There will always be arguments on both sides. Some political parties are criticizing the government (DK) for waiting too long to act, and some restaurants outside the cities are reporting a surge in reservations (DK) from people in the lockdown areas.

14 September 2020

Coronavirus DK: Infections up and restrictions back

Denmark has seen a steady rise in infections (DK) in the past month, although the number of hospitalizations and deaths remain low. For three months, from the beginning of May to the beginning of August, the number of daily infections was below 100. Since the beginning of September, it has been above 200, rising to 300 this past week. Hospitalizations number 47, 4 in ICUs, and deaths total 631. The reproduction number has fluctuated between 1.0 and 1.5 since mid-July, and it is back at 1.5. Testing has also increased significantly.

The number of deaths per million is now 109. In comparison, the figure is 588 in Italy, 589 in the US, and 616 in the UK. The other Nordic countries: 49 in Norway, 582 in Sweden, and 61 in Finland. 

New restrictions but no return to a general lockdown
Tighter restrictions (DK) went into effect last week. In 18 municipalities, almost all of them in Greater Copenhagen, the limit on gatherings was reduced from 100 to 50 and bars had to close by midnight instead of 2 a.m. The limit on spectators at major sports events was reduced to 500. Face masks have been required on public transportation for two weeks now. 

The number of infections per 100,000 inhabitants has risen above 20 in 39 municipalities, and the mayors of several of them are asking that similar restrictions be implemented there. Many of them have placed limits on visits to nursing homes. But virologist Allan Randrup Thomsen (DK) does not think it is necessary in every case. The absolute number of infections is what matters most, and in some municipalities with a small number of inhabitants, the infections have come from individual incidents.

For example, if an infection is discovered in a school, it may be sufficient to close the school or class temporarily without setting restrictions on the entire community. Future restrictions will probably be implemented locally. One of the next likely measures is requiring face masks in supermarkets and shopping centers. 

Copenhagen Sunday evening. Photo: Ólafur Steinar Rye Gestsson / Ritzau Scanpix.

Young people can’t stop partying
One of the main reasons for the rise in infections, besides the loosening of earlier restrictions, is that young people are holding parties and frequenting bars and parks without observing social distancing measures. Persons from 20 to 30 account for large portion of new infections. At a press conference on Saturday (DK), Police Chief Thorkild Fogde issued a warning that if young people do not become more careful, the police will need to reinvoke tighter restrictions.

It has already made two parks in the Nørrebro district of Copenhagen off-limits, and a violation of the ban is subject to a fine of DKK 2,500 (about $400). Patrols have broken up so-called “pirate parties” at several locations on the weekends. The further restrictions could be requiring masks at bars, closing bars earlier in the evening, and banning gatherings in other areas. Several universities have suspended social activities involving more than 50 attendees. 

Economy is relatively sound
Prime Minister Mette Frederiksen (DK) issued a statement on September 11, exactly six months after the government announced lockdown restrictions. She emphasized that the Danish economy has recovered much faster than it did after the financial crisis. The number of unemployed has fallen from a peak of 45,000 to 25,000. Housing prices have risen since March, particularly for vacation homes. Consumer spending has recovered. Certain industries, such as hospitality and travel, have suffered long-lasting damage, but others, such as the DIY segment, have thrived during the epidemic.

As in the rest of the world, the stock market has rebounded from the initial selloff. Exports have not recovered yet because they are dependent on the economies of other countries. The recovery has been owing to the government’s relief package, and it is difficult to predict its long-term effects. Economist Michael Svarer expects the recovery to continue. He does not expect a deep second drop, as a in W-shaped pattern, but rather something resembling Nike’s swoosh logo.