Germany's economic advisers cut 2021 growth forecast

The German government’s panel of independent economic advisers has cut its 2021 growth prediction for Europe’s biggest economy to 2.7%

BERLIN -- The German government's panel of independent economic advisers on Wednesday cut its 2021 growth prediction for Europe's biggest economy to 2.7%, the latest in a series of downgrades by forecasters.

The panel's new forecast was down from the 3.1% it predicted in March. It expected gross domestic product would expand by 4.6% in 2022, with the economy likely to return to its pre-pandemic size in next year’s first quarter.

Germany’s recovery from the coronavirus pandemic is progressing more slowly than originally anticipated amid concerns about higher energy prices and stubborn bottlenecks in supplies of raw materials and parts.

“We think the economic recovery remains intact,” panel member Volker Wieland said. “It is delayed somewhat until the bottlenecks disperse bit by bit.”