Berlin—Germany’s top economic institutes cut their joint forecast for 2021 growth in Europe’s largest economy to 2.4 percent on Thursday as supply bottlenecks hamper manufacturing, but they raised their prediction for next year. The five institutes—the RWI in Essen, the DIW in Berlin, the Ifo in Munich, the IfW in Kiel, and Halle’s IWH—raised their 2022 forecast to 4.8 percent from 3.9 percent, saying the economy would reach normal capacity utilization over the course of the year as the impact of the coronavirus pandemic gradually eased. Reuters first reported on Wednesday that the institutes planned to cut their forecast for 2021, which had stood at 3.7 percent. Global manufacturing has been slammed by shortages of components, clogged ports, and a lack of cargo containers. A labor market crunch has added to the disarray after pandemic-induced shutdowns last year. The Economy Ministry said a GDP increase was likely in Germany in the third quarter …
German Economic Institutes Cut 2021 GDP Forecast
October 15, 2021
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2021 GDP ForecastBusiness & EconomyEconomiesEuropeGerman Economic InstitutesInternationalMarketsWorld
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