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IFO lowered the forecast of German GDP growth to 2.5%


Septembre, 22 2021
watermark Economic news

The German Economic Institute IFO today announced a reduction in the growth forecast of Europe's largest economy for 2021, as disruptions in supply chains and a shortage of intermediate goods slow down the German recovery.


The IFO now believes that German gross domestic product growth will be 2.5% in 2021, which is 0.8 percentage points lower than the previous forecast, and 5.1% next year, which is 0.8 percentage points higher than the previous forecast.


Timo Wolmersheuser, chief economist at Ifo, noted that a confident economic recovery after the coronavirus crisis (which was initially expected in the summer) is being postponed. Industrial production is currently declining due to bottlenecks in the supply of important intermediate goods. At the same time, service providers are actively recovering from the crisis, Wolmersheuser added.


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Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.