Germany lowers growth forecast for 2022

The German government on Wednesday lowered its forecast for growth in gross domestic product for 2022 to 3.6%, from 4.1% it expected at the end of last year.

The recovery should later pick up steam “after the expected flattening of the infection rate” and end supply problems in the industry, he added.

These forecasts for the current year appear more pessimistic than those previously communicated by the German central bank (4.2% growth) or the IFO Statistics Institute (3.7 percent).

The shortage of materials on world markets is affecting the manufacturing industry, a key sector of Europe’s largest economy, and is also increasing inflationary pressures.

In addition, the German government expects inflation to continue to accelerate this year, contrary to previous forecasts, which are likely to lead to higher wage demands from unions, the Ministry of Economy said in its annual economic report.

The government predicts a national inflation rate of 3.3% this year, after an estimate of 3.1% in 2021, as rising energy costs and shortages of semiconductors and other intermediate products continue to push up prices overall. , the ministry said. Wednesday.

Leave a Comment