The German economy will begin a notable recovery this year. The country's GDP will grow by 3.7 percent, according to the forecast of the Institute for Economic Research (IWH) in Halle, released on Thursday, March 11.
In the first quarter of 2021, economic indicators will continue to fall due to the lockdown, but economists expect a gradual lifting of restrictions soon.
“The strong recovery in demand is supported by the fact that household disposable income has generally remained stable, thanks in part to government support measures,” said IWH Vice President Oliver Holtemöller.
In 2022, economic growth in Germany will continue, experts of the institute believe. The IWH predicts another 3.6 percent next year.
German economic recovery
After falling GDP by 4.9 percent in 2020, experts are quite optimistic about the speed of recovery of the German economy. Thus, the Federal Association of German Industry (BDI) in January presented a forecast for GDP growth of Germany by 3.5 percent.
The Council of Economic Experts under the German government at the beginning of the year also proceeded from an indicator of 3.7 percent. Although in connection with the continuing lockdown, the Council of the Wise announced at the end of February about a possible downward adjustment of the forecast, possibly even below 3 percent.