The Association of the Bavarian Economy (VBW) expects 3.4 percent growth in Bavaria for the coming year. VBW President Wolfram Hatz said on Tuesday: “The Bavarian economy is far from the Corona low. But we hope for a somewhat more dynamic upswing in the second half of 2022. This would bring us back to the pre-crisis level.” The prerequisite is that there is relief in the event of delivery bottlenecks and material shortages and that Corona is better under control in the coming autumn with vaccinations. “The shortage of skilled workers threatens to become an additional bottleneck factor for companies in the Free State in 2022 and endangers the upswing,” said Hatz.
The weak economic development is likely to continue in the new year for the time being. VBW expects growth in the consumer-related areas in the second quarter. In the summer, the industry’s problems with material shortages and delivery bottlenecks could slowly resolve. “That will provide somewhat stronger growth impulses, and there will also be some easing of the recent sharp rise in inflation,” said Hatz.
Bavaria’s economic output collapsed by 5.5 percent last year. In the current year, the Association of Bavarian Economy expects growth of only 2.7 percent. Delivery bottlenecks, the shortage of raw materials, materials and intermediate products, rising prices and the fourth corona wave slowed the recovery. For Germany, the Ifo Institute is expecting 2.5 percent economic growth this year, and 3.7 percent next year.