The ifo Institute, a Munich-based research institution, lowered its economic growth forecast for Germany in 2022 from 5.1% to 3.7% in 2022.
“A strong recovery will set in over the summer in the first half of 2022 as the wave of Covid-19 subsides and supply bottlenecks gradually come to an end,” Timo Wollmershaeuser, head of research and economic forecasting at the institute.
“Overall economic output is expected to increase significantly in the second and third quarters of 2022 and slowly move towards average growth rates,” Wollmershaeuser added.
The forecast for economic growth in Germany in 2023, on the other hand, has been raised by 1.4 percentage points to 2.9%. There has been a “change in economic dynamics from next year to the year after,” the ifo institute noted.
In terms of inflation, the institute expects a further increase to 3.3% in 2022 after 3.1% in 2021. Consumer price inflation would only normalize in 2023, when it would amount to 1.8%, according to the Munich-based research. institution.
According to ifo forecasts, Germany’s unemployment rate will steadily decline from an annual average of 5.7% in 2021 to 5.2% in 2022 and 4.9% in 2023, the agency reported. press Xinhua.
Germany’s budget deficit is expected to shrink by about half to 80 billion euros ($90.4 billion) in 2022. In 2023, the deficit would be just 20 billion euros, according to the ‘I fo. (1 euro $1.13)
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