Germany’s economy is set to recover at a slower pace than expected earlier, thanks to the resurgence in the coronavirus pandemic and the second lockdown to curb it, the think tank ifo institute said Wednesday.
In its winter forecast, the institute lowered the growth outlook for Germany for next year to 4.2 percent from 5.0 percent predicted in the autumn projections.
The biggest economy in the euro area is forecast to shrink 5.1 percent this year, which a tad smaller than the 5.2 percent contraction seen earlier.
Ifo raised the growth outlook for 2022 to 2.5 percent from 1.8 percent.
“Recent shutdowns in Germany and other countries are pushing the recovery back,” ifo said.
“Production of goods and services won’t reach pre-crisis levels until the end of 2021.”