LAST UPDATE: 18.18
The German government will cut its forecast for economic growth this year to 3.6% from 4.1% in October, a government source told Reuters on Friday.
The revised forecast is due to disruptions in supply for products such as semiconductors and the fourth wave of the coronavirus, said Der Spiegel, which was the first to broadcast the news.
The paper cites the government’s annual financial report to be presented by Economy Minister Robert Habeck next week.
The economy ministry declined to comment, according to Reuters.
The German industry association BDI said earlier this month that it expects the country’s economy to grow by 3.5% this year, in a more cautious forecast than the government.
Meanwhile, the German government expects inflation to reach an average of 3.3% this year, up from 3.1% in 2021, according to a draft of the annual financial report examined by Reuters.
Finally, the government predicts that structural inflation, excluding increases in food and energy prices, will reach 2.5% in 2022, according to the draft.
Source From: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
