gross domestic product
Federal government wants to lower economic forecast
The federal government is lowering its growth expectations for this year. Photo: Jens Kalaene / dpa-Zentralbild / dpa
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The ongoing consequences of the pandemic and delivery bottlenecks are slowing the economic upturn in Germany this year. What are the prospects for 2022?
The federal government wants to lower the economic forecast for this year significantly. According to information from the German Press Agency, only 2.6 percent growth in gross domestic product in Germany is expected for the current year.
In April, the government had expected an increase of 3.5 percent. For 2022, the federal government expects growth of 4.1 percent instead of the previous 3.6 percent. The outgoing Federal Economics Minister Peter Altmaier (CDU) will present the federal government’s autumn projection this Wednesday in Berlin.
The lowering of growth expectations for this year does not come as a surprise. Leading economic research institutes only lowered their economic forecast for this year in mid-October. After the corona-related slump in economic output in 2020, the institutes expect growth of 2.4 percent. The ongoing consequences of the pandemic and delivery bottlenecks are slowing the economic upturn in Germany. In the course of 2022, the German economy should return to normal capacity, it said. According to forecasts by the institutes, gross domestic product will rise by 4.8 percent in 2022.