The industrial nations organization OECD predicts less growth for the German economy this year due to supply bottlenecks in industry.
The gross domestic product will increase by 2.9 percent, according to the outlook published on Tuesday.
In May, 3.3 percent had been predicted.
For this, the forecast for 2022 has been increased from 4.4 to 4.6 percent.
Last year, Europe's largest economy collapsed by almost five percent due to the corona pandemic.
"The automotive industry, which is heavily involved in global trade, and the manufacturing sector as a whole are particularly hard hit by global delivery bottlenecks and logistics difficulties," said the head of the OECD Berlin Center, Nicola Brandt, explaining the lowering of the forecast for the current year.
"That of course slowed the recovery of the German economy." On the other hand, the demand for German industrial goods remains strong.
"We expect the delivery bottlenecks to gradually resolve from the fourth quarter and then a stronger recovery," said Brandt.
Gaps in many countries
For the global economy, the OECD is forecasting growth of 5.7 (previously: 5.8) percent this year, followed by an increase of 4.5 (previously: 4.4) percent in the coming year. "A strong recovery in Europe, the likelihood of additional fiscal support in the United States in the next year and reduced household saving will improve the growth prospects in the industrialized countries." The global gross domestic product has exceeded the level reached before the pandemic: "But in many Countries, especially in the emerging economies, continue to have production and employment gaps. ”This applies above all to those countries in which vaccination rates are low.
For the US economy, the growth forecast for this year has been lowered from 6.9 to 6.0 percent, while it has been raised from 3.6 to 3.9 percent for 2022. The Chinese gross domestic product is likely to grow even faster: the forecasts of 8.5 percent this year and 5.8 percent next year have been confirmed.