Economic institutes slash Germany's growth forecast
ABC News
Germany’s leading economic institutes have slashed their forecast for Europe’s biggest economy
BERLIN -- Germany's leading economic institutes on Thursday slashed their forecast for Europe's biggest economy, saying output is being held back by global supply bottlenecks and lingering restraints on personal contact amid the pandemic.
The experts cut their growth forecast for this year to 2.4% from the 3.7% they had forecast earlier this year.
They said, however, that during the course of 2022 the economy should return to normal capacity utilization as the adverse effects of the pandemic and supply bottlenecks are gradually overcome. They raised the 2022 growth forecast to 4.8% from 3.9% in 2022.
Germany's manufacturing and export-heavy economy has been hit by shortages of a range of parts and raw materials as global supply chains struggle to cope with the rebound in demand post-pandemics, as well as by higher input prices.
