Wednesday April 14, 2021
Pandemic delays recovery
Experts lower growth forecast
The ongoing corona pandemic and the effects of the third wave are noticeably slowing the economic recovery. As a result, experts now expect significantly lower growth. However, they are more optimistic about the coming year.
According to insiders, the leading institutes have significantly lowered their forecast for the growth of the German economy. For the current year they only expect an increase in gross domestic product (GDP) of 3.7 percent, said several insiders. Last autumn they had assumed 4.7 percent, but Europe’s largest economy is likely to have started the year weaker than expected due to the ongoing corona restrictions.
The pandemic is delaying the upswing, according to the report. For 2022, however, the forecast has been raised significantly, from 2.7 to 3.9 percent. Then private consumption should noticeably boost growth. Last year, GDP slumped by 4.9 percent due to the Corona crisis.
The joint diagnosis is to be officially presented tomorrow, Thursday. It serves the federal government as the basis for its own projections, which in turn form the basis for the tax estimate. So far, it has assumed an increase of three percent in the current year. The expert opinion is being prepared by the RWI in Essen, the DIW in Berlin, the Ifo Institute in Munich, the IfW in Kiel and the IWH in Halle.
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