As of: 01/17/2022 4:58 p.m
The industrialized countries association OECD warns that the economic boom after the Corona slump could weaken significantly – not only in Germany but also in other western countries.
According to estimates by the OECD, the upswing in several industrialized countries this year will probably be less strong than hoped. As reported by the Association of Industrialized Countries, the leading macroeconomic index is already pointing to a slowdown in growth momentum. Canada, Germany, Italy and the United Kingdom are particularly affected. In Germany, growth had been slightly above the long-term trend since February of last year, but weakened again from August. With an increase of 2.7 percent, Germany’s economic output grew significantly more slowly than most other countries in the euro zone.
In Japan and the In the euro area as a whole, the index signals stable growth, although the indicators have also peaked, according to the OECD. In the USA, too, there are signs of continued stable growth. In France the current pace of growth after the pandemic also seems to be continuing unabated.
Omicron could trigger fluctuations
Among the major emerging economies, the OECD indicators for Russia are rising continued to rise, although there are signs of slowing growth. According to the analysis, China has fallen behind the long-term trend, stable growth is expected for India, while indicators for Brazil point to a clear slowdown in growth. In view of the ongoing corona pandemic and the effects of the omicron variant, the indicators should be interpreted with more caution than usual, it said. The size and strength of the fluctuations should not be taken as an accurate measure of expected growth in economic activity.
Economists point out that the main reason for the below-average growth in Germany in a European comparison are the so-called base effects, according to which the gross domestic product (GDP) in Germany in 2020 as a result of the pandemic had fallen less sharply (minus 4.8 percent) than in many neighboring countries and the increase in subsequent years is therefore lower.