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In Germany, weaker growth but more inflation

2021-03-17T20:07:34.337Z

Experts are worried about a rebound in inflation to 2.1% at the end of the year. Less growth, but more inflation: this is the paradox that Germany could face this year. The Committee of Wise Men advising the Berlin government has revised its forecast for GDP growth to 3.1% this year, against 3.7% previously. The government, it anticipates 3%, after a fall of 5% last year. This slowdown is due to the decline in activity in the first quarter, by around 2%, after the surge in Cov



Less growth, but more inflation: this is the paradox that Germany could face this year.

The Committee of Wise Men advising the Berlin government has revised its forecast for GDP growth to 3.1% this year, against 3.7% previously.

The government, it anticipates 3%, after a fall of 5% last year.

This slowdown is due to the decline in activity in the first quarter, by around 2%, after the surge in Covid infections and the reinstatement of restrictions.

The report of the wise men advocates a 50% increase in the daily rate of vaccination to hope to achieve collective immunity by the end of the summer.

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Still, experts worry about a rebound in inflation to 2.1% at the end of the year.

In February, the rate reached 1.6%, reflecting in particular the rise in VAT after a temporary cut decided in June to revive consumption at half mast.

It experienced a historic plunge of 4.9% last year, unprecedented.

Along with Austria or the Netherlands, Germany is in a group of countries where inflation is above the euro area average.

It reached 0.9% in February, stable compared to January, according to data released Wednesday by Eurostat.

After a 0.5% drop in prices in Germany last year, this rebound can be explained in particular by the rise in energy prices, due to the introduction of a carbon tax and the increase in prices. of oil over a year.

These price pressures are worrying in a country allergic to inflation.

There are increasing calls for an end to the accommodating policy of the European Central Bank.

Source: lefigaro

All news articles on 2021-03-17

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