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Federal government drastically cuts economic forecast

2021-10-27T09:13:46.016Z

The shortage economy and the high energy prices after the Corona slump are slowing down the German economy more than expected. The federal government expects only low economic growth.



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The first Shanghai Express with 50 containers will reach Hamburg this Thursday: despite the expansion of the Silk Road, the supply chains are faltering

Photo: Wang Qing / imago images / Xinhua

Peter Altmaier has to lower his last growth forecast for the German economy significantly.

This year the gross domestic product should only increase by 2.6 percent instead of the 3.5 percent promised in the spring, said the outgoing Federal Minister of Economics - and thus confirmed reports from the past few days.

In April the government had expected growth of 3.5 percent this year.

Next year, according to Altmaier, the economy is likely to grow by 4.1 percent, which is 0.5 points more than previously thought.

1.6 percent is expected for 2023.

The economic situation is currently split in two, said Altmaier.

According to the CDU politician, the service providers benefited from the progress in vaccination.

Private consumption is one of the drivers of the recovery from the corona crisis.

In contrast, the industry is feeling the shortage of preliminary products.

As soon as the supply bottlenecks disappeared, things should get better in 2022.

German economy should become more independent

"The growth this year will be less than we all imagined," said Federal Minister of Economics Altmaier in the morning in the ARD "Morgenmagazin".

An important reason for this is "that many goods and goods cannot be delivered because there is a shortage of raw materials in certain areas."

At lunchtime he repeated that due to "high energy prices worldwide, the hoped-for final spurt would not be achieved."

According to Altmaier, the economy will not boom until next year.

The prerequisite for this is that supply chains are stabilized internationally.

Among other things, Germany must contribute to the fact that the currently missing microchips "are produced more and more" - "also in Europe".

The minister, who is now only executive, demanded: "The new federal government must spend money on this."

More soon on SPIEGEL.de

apr / AFP / Reuters

Source: spiegel

All business articles on 2021-10-27

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