German economy is expected to grow between 3.4% and 3.7% this year – Minister


FILE PHOTO: German Economy Minister Peter Altmaier addresses a press conference in Berlin, Germany April 27, 2021. John Macdougall / Pool via REUTERS / File Photo

BERLIN (Reuters) – Germany’s economy, Europe’s largest, is expected to grow between 3.4% and 3.7% this year, Economy Minister Peter Altmaier said on Tuesday, offering a more optimistic outlook than when the government raised its forecasts at the end of April.

“Overall, the German economy will have regained its pre-pandemic strength by the end of this year. It’s a reason to be optimistic, ”Altmaier told foreign journalists.

“We expect the German economy to grow between 3.4% and 3.7% this year. If things are going great, maybe a tenth or two more. And we expect it to increase by 4% next year, ”he added.

At the end of April, the government raised its growth forecast to 3.5% from a previous estimate of 3%. Last year, the economy fell about 5%, hit by restrictions aimed at containing the COVID-19 pandemic.

When asked if he was concerned that a German consumer price hike would strengthen, Altmaier said he was “following this development very closely with inflation” but could not yet comment.

Annual consumer price inflation in Germany accelerated in May, exceeding the European Central Bank’s target by nearly but below 2%, the Federal Statistical Office said on Monday.

Consumer prices, harmonized to make them comparable to inflation data for other European Union countries, rose 2.4% in May, compared with 2.1% in April. A Reuters forecast had given a May reading of 2.5%.

Reporting by Paul Carrel, editing by Douglas Busvine

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