German government raises economic growth forecast for 2021

0


BERLIN (AP) – Germany is raising its economic growth forecast for the year pending a gradual lifting of restrictions on coronaviruses and an anticipated increase in domestic spending, the Minister of Foreign Affairs said on Tuesday. Economy.

Peter Altmaier said gross domestic product is expected to grow 3.5% in 2021 now, up from a previous forecast of 3%, and is expected to grow 3.6% in 2022.

He said the government’s “comprehensive and rapid support” for business had paved the way for a return to pre-pandemic levels by next year for Europe’s largest economy.

“Our economy is strong, robust and ready for a fresh start,” he said.

Germany’s gross domestic product fell 4.9% last year. This ended a decade of growth and was the biggest drop since the financial crisis of 2009.

However, it did better than several others in the 19 eurozone countries, as it was supported by the manufacturing sector, which was less affected than services during the pandemic.

The government’s prognosis is more optimistic than a forecast last month from its panel of independent economic advisers, which predicted growth of 3.1% in 2021.

On the other hand, a group of major German economic institutes two weeks ago forecast a growth of 3.7% in 2021.

In a bid to try to slow the spread of the pandemic in Germany, restaurants and bars are closed for indoor dining, non-essential travel is discouraged, and many non-food and non-pharmaceutical retail businesses are restricted. .

Lawmakers last week approved legislation that applies an ’emergency brake’ consistently in areas with high infection rates, removing the patchwork of measures that has often characterized the pandemic response in Germany’s 16 states .

These rules, which automatically come into effect in regions with more than 100 new cases reported per week per 100,000 population, include a 10 p.m. to 5 a.m. curfew, as well as additional limits on personal contact and non-essential stores.

Altmaier said the economic forecast is partly based on the assumption that measures can be gradually relaxed from the second quarter.

___

Follow AP’s pandemic coverage on:

https://apnews.com/hub/coronavirus-pandemic

https://apnews.com/hub/coronavirus-vaccine

https://apnews.com/UnderstandingtheOutbreak

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.


Share.

About Author

Leave A Reply