You are here: Home » International » News » Economy
Business Standard

Germany's independent economic advisers cut 2021 growth forecast

The German government's panel of independent economic advisers on Wednesday cut its 2021 growth prediction for Europe's biggest economy to 2.7%, the latest in a series of downgrades by forecasters

Topics
Germany | economic growth

AP  |  Berlin 

Photo: Bloomberg
Photo: Bloomberg

The German government's panel of independent economic advisers on Wednesday cut its 2021 growth prediction for Europe's biggest to 2.7%, the latest in a series of downgrades by forecasters.

The panel's new forecast was down from the 3.1% it predicted in March. It expected gross domestic product would expand by 4.6% in 2022, with the likely to return to its pre-pandemic size in next year's first quarter.

Germany's recovery from the coronavirus pandemic is progressing more slowly than originally anticipated amid concerns about higher energy prices and stubborn bottlenecks in supplies of raw materials and parts.

We think the economic recovery remains intact, panel member Volker Wieland said. It is delayed somewhat until the bottlenecks disperse bit by bit.

A resurgence of COVID-19 infections also is causing alarm, though German authorities want to avoid blanket lockdowns of the kind imposed during earlier surges.

There is great uncertainty about how the will perform going forward, the economic advisers said. Renewed health policy restrictions or longer-lasting supply shortages could take a heavy toll on the recovery.

They said, however, that inflation could drop again next year following an acceleration over recent months.

Official figures show that Germany's GDP grew by 1.8% in the July-September period compared with the previous quarter. That followed growth of 1.9% in the second quarter and a 1.9% decline in the first quarter. Factory orders and export figures for September, the most recent month available, were disappointing.

The German government also recently cut its full-year growth forecast to 2.6% from the 3.5% it had predicted in April. Last year, GDP shrank by 4.9%.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, November 10 2021. 17:23 IST
RECOMMENDED FOR YOU
.