German Council of Economic Experts Revises Down 2021 Germany Growth

17 March 2021

By David Barwick – FRANKFURT (Econostream) – The German Council of Economic Experts (GCEE) on Wednesday revised down its forecast for German economic growth this year to 3.1% from 3.7%.

The expansion would become more robust next year and deliver growth of 4.0% ‘as demand rises worldwide and consumers run down the savings that they have accumulated’, the GCEE said.

The GCEE is an independent academic body established by German law to give advice on matters of economic policy and assess the macroeconomic outlook for political decision-making purposes.

According to the Council, German inflation would average 2.1% this year and 1.9% next.

With respect to the pandemic, ‘[a] sharp rise in infection rates could delay economic recovery, especially if industry was severely affected by restrictions and plant closures’, the GCEE cautioned. ‘In contrast, swifter progress on vaccinations could contain the pandemic sooner, allow restrictions to be lifted and accelerate recovery.’

The Council forecast Eurozone GDP growth of 4.1 % and 4.2 % in 2021 and 2022, respectively.