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A container ship in China (archive picture): delivery bottlenecks are slowing the upswing in Germany.
Photo: Uncredited / dpa
The economy is coming out of the corona hole more slowly than expected.
The Munich Ifo Institute lowered its economic forecast for the coming year by 1.4 points and is now assuming an increase of 3.7 percent.
In return, the economy is expected to grow faster in 2023 than predicted in autumn and increase by 2.9 percent.
»The ongoing delivery bottlenecks and the fourth corona wave are noticeably slowing down the German economy.
The strong recovery initially expected for 2022 will be postponed further, "said Ifo economic chief Timo Wollmershäuser.
The economic researchers left the forecast for the current year at an increase of 2.5 percent.
They had to downgrade it several times, however.
In terms of inflation, the institute expects a further increase to 3.3 percent in the coming year after 3.1 percent in 2021. Drivers are costs due to delivery bottlenecks and a delayed adjustment to the increased energy and raw material prices.
In 2023, the price increase should then normalize and drop to 1.8 percent.
The European Central Bank is aiming for an inflation rate of 2 percent.
According to the forecast, the unemployment rate will fall: after an annual average of 5.7 percent this year to 5.2 percent in the coming year and 4.9 percent in 2023. The Ifo Institute also predicts a decline for the deficit in the state budget: from 162 Billion euros in 2021 to 80 billion in the coming year and 20 billion in 2023.
mic / dpa
