Germany's top economic institutes has today cut their joint forecast for 2021 growth in Europe's largest economy to 2.4% as supply bottlenecks continue to hamper manufacturing.
But the institutes also lifted their expectations for next year significantly.
The five institutes - the RWI in Essen, the DIW in Berlin, the Ifo in Munich, the IfW in Kiel and Halle's IWH - raised their 2022 forecast to 4.8% from 3.9%.
They said the economy would reach normal capacity utilisation over the course of the year as the impact of the coronavirus pandemic gradually eased.
Reuters first reported yesterday that the institutes planned to cut their forecast for 2021, which had stood at 3.7%.
"The challenges of climate change and the foreseeable lower economic growth due to a shrinking labour force will reduce consumption opportunities," said the IWH's Oliver Holtemoeller.
Global manufacturing has been slammed by shortages of components, clogged ports and a lack of cargo containers.
A labour market crunch has added to the disarray after pandemic-induced shutdowns last year.
The Economy Ministry said a GDP increase was likely in Germany in the third quarter thanks to a growth in services, though growth was expected to stagnate towards the end of 2021.
The five institutes expect inflation to be 2.5% in 2022 and 1.7% in 2023.
Global manufacturing has been slammed by shortages of components like semiconductors, clogged ports and a lack of cargo containers.
A labour market crunch has added to the disarray after pandemic-induced shutdowns last year.
