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Bottlenecks paralyze Germany: economic methods significantly lower growth forecast

2021-11-10T10:20:12.055Z

The shortages of materials in construction and in the automotive industry are slowing down the recovery from the Corona recession: The Advisory Council is only expecting 2.7 percent growth this year.



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Also affected by the lack of material: construction sites in Hamburg's HafenCity

Photo: Daniel Bockwoldt / dpa

The »economic wise men« expect weaker growth in Germany this year.

A strong upswing after the corona-related slump in economic output in 2020 is not expected until next year.

This emerges from the annual report that the Council of Economic Experts handed over to the Executive Chancellor Angela Merkel (CDU) for the assessment of macroeconomic development - this is the official name of the body.

For the current year, the economists expect the gross domestic product to grow by only 2.7 percent.

In March, the economists had expected an increase of 3.1 percent.

Last year, forecasts were still more than four percent.

Germany is suffering from a shortage economy

The recovery of the German economy continued in the summer.

However, it is being dampened by delivery bottlenecks, it said.

If private demand for services and industrial production normalize next year, economic growth should continue to pick up.

For 2022, the "economic wise men" expect growth of 4.6 percent.

However, there are significant risks for the development of the economy.

These included prolonged delivery bottlenecks and a pandemic that flared up again in winter, as the report shows.

There are different opinions among the currently only four members of the actually five-member Expert Council on how investments in climate protection or digitization, for example, should be mobilized - and whether legally independent extra budgets can be used for this at public companies or companies such as Deutsche Bahn or the Federal Agency for Real Estate .

This is a paragraph that is also being discussed in the ongoing coalition negotiations between the SPD, the Greens and the FDP.

beb / dpa

Source: spiegel

All business articles on 2021-11-10

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