FRANKFURT – Germany’s economic recovery will take a hit this year as global supply-side bottlenecks are putting a brake on activity, the Ifo institute said Wednesday.
Ifo cut its 2021 growth forecast by 0.8 percentage points to 2.5 percent this year. But it raised its forecast by 0.8 percentage points to 5.1 percent for 2022.
“The strong recovery after [the pandemic], which was originally expected for the summer, is further postponed,” said Ifo chief economist Director Timo Wollmershäuser. “At the moment, industrial production is shrinking as a result of supply bottlenecks for important preliminary products.”
For 2023, Ifo expects the German economy to expand by 1.5 percent.
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