Economics
German Institutes Cut 2021 GDP Forecast on Longer Lockdowns
- Twice-yearly forecast revised down to 3.7% growth from 4.7%
- Outlook for 2022 raised to 3.9% from previously expected 2.7%
Stacked furniture at a closed restaurant in Munich, on April 7.
Photographer: Michaela Handrek-Rehle/BloombergThis article is for subscribers only.
Germany’s leading research institutes cut their joint 2021 growth forecast for Europe’s biggest economy as prolonged lockdowns hold back the nation’s recovery.
The downgrade to a 3.7% expansion in gross domestic product, from 4.7% previously, reflects a sluggish vaccination campaign which has forced the government to extend virus restrictions. The outlook for 2022 was upgraded to 3.9% from 2.7%.