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German govt to cut 2022 growth forecast to 3.6%

by Mike Robinson

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© Reuters. FILE PHOTO – People wearing protective masks stroll along Kurfurstendamm, Berlin’s shopping district, during the COVID-19 outbreak. This was December 5, 2020. REUTERS/Fabrizio Bensch

BERLIN (Reuters] – The German government plans to cut its growth projections for next year from 4.1% in October, which was 4.1%. This is according to two people familiar with the matter.

Der Spiegel reported that the revision was caused by supply issues for semiconductors and fourth-wave coronavirus infections.

According to the magazine, Robert Habeck will present next week’s government’s annual economic reports.

On Wednesday, the cabinet will approve the annual economic reports for the year and a forecast. It is not possible to forecast 2023.

The ministry of economy declined to comment.

The majority of economists predict that the German economy will shrink once more in the first quarter of 2022. This would drive it into another technical recession.

The BDI Industry Association in Germany stated earlier this month that it expects the German economy will grow by 3.5% this year. This is a cautious prediction than the government, as it warns that businesses could be subject to another year of “stop and go” due to the pandemic.

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