display
Kiel (dpa) - The Institute for the World Economy has revised its economic expectations upwards for this year and is now assuming growth in gross domestic product (GDP) of 3.7 percent.
So far, the Kiel researchers had expected an increase of 3.1 percent.
The reason is the industrial economy, which benefits from foreign business, as the IfW announced on Thursday.
The institute now expects growth of 4.8 percent for 2022.
However, the German economy is likely to have started the year with a setback.
The IfW assumes a minus of 2.7 percent in the first quarter due to the corona lockdown.
For their forecast, the Kiel economic researchers assume that, due to a successful vaccination campaign, the economy will recover across the board over the course of the summer.
In private consumption, massive catch-up effects are expected to set in in the second half of the year.
In private households, purchasing power of 230 billion euros had built up during the pandemic.
display
The IfW expects an inflation rate of 2.3 percent in the current year and less than 2.0 percent in 2022.
The unemployment rate will remain relatively low this year at 5.9 percent and next year at 5.3 percent.
© dpa-infocom, dpa: 210318-99-873826 / 2
Communication from the ifw