The Bundesbank expects the German economy to gradually overcome its current weakness. However, it assesses growth in the coming year much more restrained than before.
According to the Bundesbank now only for 2020 with a calendar-adjusted increase in gross domestic product (GDP) of 0.6 percent, she said. In June, she had expected for the coming year, a growth of 1.2 percent. "However, from today's perspective, it is not to be expected that the German economy will slide into recession," it said.
Change drive forces
From the year 2021 it will probably go more uphill. "In addition to the noticeably supportive fiscal policy and the very expansive monetary policy, exports are the key factor for the better economic outlook," said Bundesbank President Jens Weidmann.
Already in the coming year, the industrial boom should catch, expects Weidmann. By contrast, domestic demand will not grow as dynamically. However, there are still risks. "There are still external sources of danger that can exacerbate and prolong the downturn in the industry," Weidmann continued.
In concrete terms, the Bundesbank expects calendar-adjusted economic growth of 0.5 percent this year. For 2021, a growth rate of 1.4 percent is expected. In 2022, growth of a similar magnitude would be possible. The forecasts for this and next year were reduced, for 2021, the expectation was raised slightly.
