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Tags: Germany | Economy

German Government Cuts 2022 Economic Growth Forecast to 3.6%

German Government Cuts 2022 Economic Growth Forecast to 3.6%

Wednesday, 26 January 2022 07:00 AM

BERLIN (AP) — The German government on Wednesday cut its growth forecast for this year, but said that Europe's biggest economy remains “robust” and will return to its pre-pandemic size in 2022.

The Economy Ministry predicted that gross domestic product will grow by 3.6%, down from the 4.1% Germany's previous government forecast in late October.

The picture has been clouded since then by a steep new wave of coronavirus infections fueled by the highly contagious omicron variant.

GDP grew 2.7% last year, according to preliminary official figures, rebounding from a plunge of 4.6% in 2020 when pandemic lockdowns were at their most severe. The government said this year's projected growth will bring it back to its pre-crisis size.

“The consequences of the corona pandemic are still noticeable and many companies still have to struggle with them,” Economy Minister Robert Habeck said in a statement. “Nevertheless, our economy is still robust.”

Germany’s national statistics office has estimated that output in Germany fell by between 0.5% and 1% in last year’s final quarter. Forecasts are also shaky for the current quarter, raising the possibility of a technical recession.

But hopes are high that the picture will improve as the year progresses. On Tuesday, a closely watched survey showed business confidence unexpectedly picking up in January after a six-month slide.

That increase came thanks to a significant improvement in managers' outlook for the next six months, even as their assessment of the current situation worsened.

© Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


GlobalTalk
The German government on Wednesday cut its growth forecast for this year, but said that Europe's biggest economy remains "robust" and will return to its pre-pandemic size in 2022.The Economy Ministry predicted that gross domestic product will grow by 3.6%, down from the...
Germany,Economy
241
2022-00-26
Wednesday, 26 January 2022 07:00 AM
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