The upswing of the German economy from the Corona low is taking longer than hoped. The pandemic is stubborn, global supply bottlenecks are slowing down Europe’s largest economy. Nevertheless, after the economic output plummeted by 4.9 percent in 2020, the signs are pointing to growth again. According to forecasts, German economic output increased by around 2.5 percent last year. A first official estimate of the gross domestic product (GDP) 2021 will be available this Friday (10 a.m.) from the Federal Statistical Office in Wiesbaden.
However, economists expect the economy to cool down significantly in the coming months. In their opinion, the fight against the ongoing spread of the corona virus, including renewed restrictions in retail, for example, should weaken private consumption, which is an important pillar of the economy.
From the spring of 2022, the upswing should gain momentum – driven primarily by consumers’ desire to buy. The Bundesbank, among others, assumes that people in Germany will spend more money for a while than in the pre-pandemic times. The coffers of many households are well filled, for example because trips had to be canceled and leisure activities were temporarily restricted.
Economists also assume that companies will invest more again from spring, when there is less uncertainty about the further course of the pandemic. In 2022, economists expect the German economy to achieve comparatively strong growth of between 3.5 percent and a good 4 percent. (dpa)