Germany’s top economic institutions on Thursday cut their forecasts for Europe’s biggest economy, saying output was being held back by global supply gridlock and ongoing social restrictions amid the pandemic.
Experts cut their growth forecast for this year to 2.4 percent from the 3.7 percent they forecast earlier this year. However, they say during 2022 the economy should return to normal capacity utilization, as the devastating effects of the pandemic and supply bottlenecks are gradually resolved.
The economic institute raised its 2022 growth forecast to 4.8 percent from 3.9 percent. Germany’s manufacturing and export-intensive economy is beset by shortages of parts and raw materials, as world supply chains struggle to cope with a post-pandemic demand spike, and higher production prices. [ps/jm]