German government does not expect strong economic upswing until 2022

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The German does not expect a strong upswing in the country’s until next year, as it announced a scaled-down growth forecast for 2021.

The expected gross domestic product (GDP) to increase by 2.6 per cent this year.

In April, a rise of 3.5 per cent had been predicted.

The long-term prospects look better, however, with the Federal now expecting growth of 4.1 per cent instead of the previous 3.6 per cent in 2022.

Germany’ outgoing Minister Peter Altmaier said on Wednesday that the demand for German products on the world markets remains high.

“If the bottlenecks gradually disappear, there will be significant catch-up effects in 2022,’’ he said.

The German also expects the inflation rate to return to a significantly lower level as early as the turn of the year.

This is because some special factors will no longer apply, such as the reversal of the temporary lower rates of introduced to boost the in the early stages of the pandemic.