Berlin (AFP)
The German government raised its growth forecast for 2021 to 3.5% on Tuesday, from an estimated 3.0% in January, thanks to the good performance of the industry and a "gradual" lifting of restrictions against the pandemic in the second quarter .
"Our economy is strong, robust, and ready for a new start", after a historic drop of 4.9% in 2020, said Economy Minister Peter Altmaier.
For 2022, the government expects growth of 3.6%, allowing the leading European economy to return to its pre-crisis level.
These new projections are based on "the assumption that the restrictive measures (...) can be gradually relaxed during the second quarter," the ministry said.
The country has closed its cafes, bars, restaurants, places of culture and leisure since November, and a large part of its stores since December.
These measures are considerably slowing down Europe's largest economy, which is expected to experience a drop of 1.8% of GDP in the first quarter, according to forecasts from the main economic institutes.
But the vaccination campaign is accelerating, after a sluggish start, and suggests a way out of the crisis.
Berlin expects, after the lifting of the measures, "a clear recovery of the domestic economy and private consumption", which will galvanize growth.
The government is also pleased with the "good industrial situation and the international environment which give a significant boost".
The industrial sector, very dependent on exports, resists restrictions, thanks to the dynamism of the Chinese and American economies, in particular.
The branch, a pillar of the German economic model, should also take advantage of the American and European stimulus plans to boost its orders during the year.
This new forecast is similar to that unveiled by the German economic institutes, which forecast mid-April on growth of 3.7%.
© 2021 AFP