Advisers to the German government have downgraded their growth estimate for 2021

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The German government’s economic council will cut its 2021 growth forecast for Europe’s largest economy to 2.7% from its March estimate of 3.1% due to supply chain shortages, a source told Reuters. who knows the data.

The advisory committee, also known as the “wise men”, is set to formally present its autumn forecast on Wednesday.

The German government last month already cut its growth forecast for 2021 to 2.6% from 3.5% in April, but raised its estimate for next year to 4.1% from 3.6%.

The commission will also forecast an accelerated recovery, estimating growth at 4.6% next year, compared to its estimate of 4% in March, according to the data source, confirming a report released earlier. on Monday by the German newspaper Handelsblatt.

Extensive bottlenecks in production, combined with unusually high demand, are leading to price increases in Germany.

Inflation will reach close to 3.1% this year, but will then stabilize, slowing to 2.6% in 2022, Handelsblatt said, citing the council.

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Source From: Capital

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