The European Union Commission raised its forecast for economic growth in the eurozone in the current and next year. As a result, Germany is growing somewhat slower this year, but faster than average next year.
As it announced in its summer forecast, it now expects GDP to rise by 4.8 (spring forecast: 4.3) per cent for 2021. Growth is now forecast at 4.5 (4.4) per cent for 2022. According to the EU Commission, this means GDP will already reach its pre-crisis level in the fourth quarter. In the spring forecast, this was announced for the first quarter of 2022.
The authority relied on two main reasons for raising expectations: First, activity in the first quarter of the year exceeded expectations. Second, an effective strategy to contain the virus and advances in vaccinations have led to lower numbers of new infections and hospitalizations, which in turn has prompted EU member states to allow their economies to reopen in the next quarter.”
The agency believes that the German economy will grow by 3.6 (3.4) per cent this year. A 4.6 (4.1) per cent increase is expected for 2022. Deutsche Bundesbank had forecast growth rates of 3.7 per cent and 5.2 per cent in June.
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