German Government Downgrades GDP Growth Forecast for 2021 to 3% From 4.4%

BERLIN (Pakistan Point News / Sputnik - 27th January, 2021) The German government downgraded forecast for the country's GDP growth in 2021 to 3 percent from 4.4 percent previously, the restoration of the economy to pre-crisis level is expected in mid-2022, German Economy Minister Peter Altmaier said on Wednesday.

"We expect in the current year, 2021, despite the pandemic, despite the situation we have, an increase of 3 percent. This is more than the average in the last ten years, but at the same time, this is a growth that needs to be considered in connection with a 5-percent drop last year," Altmaier, presenting his annual economic report.

He added that the government proceeded from the assumption that "the German economy will reach the level it was before the crisis caused by the coronavirus from the second half of next year."

In the fall forecast, the German Economy Ministry expected the economy to grow 4.4 percent in 2021, down from 5.2 percent in spring estimate.