BERLIN, July 14 (Xinhua) -- Withdrawal from globalization in the wake of the coronavirus pandemic would lead to loss of prosperity, according to a study published by Germany's ifo Institute on Tuesday.
"Rolling back globalization, for example by bringing production back to Germany on a larger scale, would not be a solution to the current crisis," said Lisandra Flach, director of the ifo Center for International Economics.
According to calculations by the ifo Institute, the COVID-19 pandemic already reduced Germany's GDP back down to its 2013 level. In a less globalized world, the GDP level in Germany would be comparable to that of 1996.
Renationalization and return of production to Germany, Europe's largest economy, would have "enormous negative consequences" for the country's economic strength, the study noted.
The ifo study noted that the COVID-19 shock would affect globalized countries more than closed economies. "However, globalization has already lifted the countries involved to a level they would never have reached without worldwide value creation."