Ifo Institute cut German’s 2021 growth forecast to 3.3% from 3.7% due to the pushback of the pandemic recovery.
- The Ifo Institute estimated that the overall cost of the pandemic crisis for Germany’s economy amounts to 382 billion euros from 2020.
- The output will then expand by 4.3% in 2022, up from a previous estimation of 3.2%.
- The head of forecast division projects that the main factor reducing short-term growth are the bottlenecks in the supply of intermediate products.
- Reopening business triggered a strong coronavirus pandemic recovery.
The recovery is now getting pushed back a bit further than the Ifo Institute expected in the spring.
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Source: Ifo Institute.