German government lowers 2022 economic growth forecast to 3.6%

Berlin — Wednesday’s German government lowered its growth forecast this year, but said Europe’s largest economy is still “strong” and will return to pre-pandemic scale in 2022.

The Ministry of Economy has predicted that gross domestic product will increase by 3.6% from Germany’s previous government forecast of 4.1% in late October.

Since then, the photos have been clouded by a sudden new wave of coronavirus infection caused by the highly contagious Omicron mutant.

According to provisional official statistics, GDP rose 2.7% last year, recovering from the 4.6% plunge in 2020, when the pandemic blockade was the most severe. The government said the expected growth rate for this year will return to pre-crisis scale.

“The impact of the corona pandemic is still significant and many companies still have to fight them,” Economy Minister Robert Habeck said in a statement. “Nevertheless, our economy is still strong.”

The German National Bureau of Statistics estimates that German production fell by 1% from 0.5% in the last quarter of last year. The outlook for this quarter is also volatile, raising the possibility of a technological recession.

But I hope the situation will improve as the years go by. A careful watch on Tuesday showed that after a six-month slide, business confidence recovered unexpectedly in January.

This increase is due to a significant improvement in the manager’s outlook over the next six months, despite a worsening assessment of the current situation.

Associated Press