Berlin (AP) — Germany is raising its economic growth forecast this year in anticipation of a gradual removal of coronavirus regulations and an expected increase in domestic spending, the Minister of Economy said Tuesday.
Peter Altmaier states that gross domestic product is expected to increase by 3.5% in 2021, up from the previous forecast of 3% and by 3.6% in 2022.
He said the government’s “comprehensive and swift support” for businesses paved the way for Europe’s largest economy to return to pre-pandemic levels by next year.
“Our economy is strong, strong and ready for a new start,” he said.
Last year, Germany’s gross domestic product shrank 4.9%. It ended 10 years of growth and was the largest decline since the 2009 financial crisis.
However, it was better than some others in the euro area of 19 countries, as it was supported by the manufacturing industry, which was less hit than the service during the pandemic.
The government’s forecast is more optimistic than last month’s forecast from a panel of independent economic advisors who forecast 3.1% growth in 2021.
Meanwhile, two weeks ago, a group from Germany’s leading economic research institute forecasts a 3.7% growth in 2021.
To delay the pandemic epidemic in Germany, restaurants and bars are closed for indoor dining, unnecessary travel is not recommended, and many non-food and non-pharmacy retailers are restricted. I am.
Last week, lawmakers approved legislation that consistently applies “emergency braking” in high-infection areas, abolishing patchwork for measures that often characterize pandemic responses across 16 German states.
These rules, which are automatically enforced in areas with more than 100 newly reported cases per 100,000 inhabitants per week, include a curfew from 10 pm to 5 am, and personal Includes additional restrictions on contact information and unwanted stores.
Altmeier said economic forecasts are partly based on the assumption that measures can be gradually relaxed from the second quarter.
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