In spring, the economic wise men were still assuming growth of 3.1 percent for this year. But delivery bottlenecks and material shortages have a lasting impact on economic development.
Material shortages and delivery bottlenecks are slowing the recovery of the German economy after the corona-related slump of the previous year.
The Advisory Council for the Assessment of Macroeconomic Development now expects the German gross domestic product (GDP) to grow by 2.7 percent in the current year, reported the “Frankfurter Allgemeine Zeitung” on Monday in a preliminary report. This emerges from the new report of the so-called economic wise men, which is to be presented on Wednesday in Berlin and according to the report is available to the newspaper. In their spring report, the economists were still assuming growth of 3.1 percent for this year.
The “Handelsblatt” reported that the panel of experts expects that growth can be caught up in the coming year. For 2022, the economy predicts an increase in GDP of 4.6 percent. For the price level, they expected an increase of 3.1 percent this year. According to the Handelsblatt, the council is still assuming an inflation rate of 2.6 percent for 2022.
For the labor market, according to the “FAZ” report, the experts expect only a slight decrease in the number of unemployed to an average of 2.633 million in the current year, and a more pronounced decrease to 2.367 million is expected in the coming year.
Most recently, economic growth in Germany has been mainly driven by consumer spending. The restrictions to combat the corona pandemic with the temporary closure of restaurants, fitness studios and shops had been gradually relaxed from mid-May. The industry, on the other hand, suffers from a shortage of materials and delivery bottlenecks, which are a consequence of the Corona crisis.
Source From: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
