According to the German government, the shortage of materials will continue to burden the German economy for a long time.
Despite the problems, the industry started the second half of the year with an increase in production.
"The existing supply bottlenecks will, however, also weigh on the industrial economy in the coming months," said the monthly report published on Monday by the Ministry of Economic Affairs.
Car manufacturers, for example, complain about a lack of semiconductors.
At the same time, the service providers “are noticeably increasing uncertainty due to the increased number of infections”.
However, the ministry does not see the upswing in jeopardy. "Overall, there should have been a noticeable increase in economic output in the current third quarter," says the report. A normalization of growth is becoming apparent for the fourth quarter. In the spring, Europe's largest economy grew by 1.6 percent after having shrunk by 2.0 percent at the beginning of the year due to the third corona wave. "The further spread of new virus mutations and their influence on the infection process, however, still represent the greatest imponderability for the further course of economic development," said the ministry.
Inflation is not expected to ease quickly after the inflation rate climbed to 3.9 percent in August, its highest level since 1993. “The inflation rate has increased significantly since the beginning of the year due to special factors,” says the monthly report, which refers to the introduction of CO2 pricing and the end of the temporary VAT cut. “At the beginning of 2022, however, the inflation rate is likely to drop again significantly after the special effects have expired,” predicts the ministry. Developments on the raw material markets indicated that the oil price would ease up in the medium term.Keywords: