Govt advisers cut German growth forecasts, see more inflation

Written by on November 10, 2021

November 10, 2021

BERLIN (Reuters) – Economic advisers to the German government cut their growth forecast for Europe’s biggest economy to 2.7% for 2021, down from the 3.1% they expected in March due to supply chain bottlenecks and capacity constraints in the global economy.

The advisers, whose forecasts guide the German government in setting fiscal policy, also said in a report published on Wednesday that they expected the current inflationary spurt to continue well into 2022.

Inflation, driven by high input prices, would come in at 3.1% this year, and at 2.6% in 2022. Economic output would grow 4.6% next year, an improvement on the 4% forecast in March.

(Reporting by Thomas Escritt, editing by Emma Thomasson)

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