The European Union Commission has raised its forecast for economic growth in the euro area for the current and the coming year. As a result, Germany is growing somewhat more slowly this year, but faster than average in the coming year.
As she announced in her summer forecast, she now expects gross domestic product (GDP) to grow by 4.8 (spring forecast: 4.3) percent for 2021. An increase of 4.5 (4.4) percent is now expected for 2022. According to the EU Commission, this means GDP will already reach its pre-crisis levels in the fourth quarter. In the spring forecast, it was announced for the first quarter of 2022.
The commission cited two main reasons for raising the forecast: “First, activity in the first quarter of the year exceeded expectations. Second, an effective strategy to contain the virus and advances in vaccination resulted in a higher risk of new infections and hospitalizations The numbers declined, with the turn drove EU member states to allow their economies to reopen in the following quarter.”
The authority believes that the German economy will grow at a rate of 3.6 (3.4) percent this year. An increase of 4.6 (4.1) percent is expected for 2022. Deutsche Bundesbank had predicted growth rates between 3.7 and 5.2 percent in June.