Munich-based research institution Ifo Institute slashed its economic growth projection for Germany for 2021 on supply chain concerns.
- Ifo expects Germany’s economy to grow by 3.3% this year from its earlier forecast of 3.7%.
- The 2022 growth projection was revised upward to 4.3% from 3.2% previously.
- Losses due to the COVID-19 pandemic are pegged at 382 billion euros or $463 billion from 2020 to 2022.
- Ifo Forecast Division Chief Timo Wollmershaeuser attributed the downgrade on the bottlenecks that hound the supply of intermediate products and dampen short-term growth.
- The reopening of the economy set off a strong recovery but is getting pushed back further than initially expected.
- Germany has performed relatively better than its peers in Europe as it is mainly backed by manufacturing.