BERLIN (Pakistan Point News / Sputnik - 24th March, 2021) The Munich-based Ifo Institute for Economic Research decreased Germany's GDP growth forecast in 2021 to 3.7 percent, the institute press office said on Wednesday.
Last December, the institute predicted that GDP would grow by 4.2 percent.
"Coronavirus infection levels picked up noticeably in fall 2020 and have recently accelerated again. As a result, Germany's economic recovery originally expected in spring 2021 has been pushed back until later in the year. Gross domestic product is expected to grow by 3.7 percent this year and 3.2 percent next year," the statement said.
According to Ifo Deputy Director Timo Wollmershauser, "the coronavirus crisis is dragging on, and this is pushing back the expected strong upswing."
The experts also expect rising consumer prices from 0.5 percent in 2020 to 2.4 percent in 2021 and 1.7 percent in 2022. The unemployment rate will fall from 5.9 percent in 2020 to 5.3 percent in 2022. The budget deficit will also decrease this year from 140 billion Euros ($166 billion) to 123 billion euros.
Germany has so far registered nearly 2.7 million COVID-19 cases. Of them, around 2.45 million people have recovered and more than 75,000 died.
