IFW: Germany’s Economy Will Likely Return to Pre-Crisis Levels in 2021

The German economy will likely grow 3.7% in 2021 and reach pre-crisis levels before the end of the year, as progress in the vaccination campaign could contribute to an increase in exports and consumption, the IFW Economic Institute said on Thursday.

IFW, one of Germany’s main institutes and part of a group that advises the government, revised upward its forecast, issued in December when it had expected 3.1% growth.

The largest European economy shrank 4.9% in 2020 due to the pandemic.

For the next year, IFW said it expects the economy to grow 4.8%, beating previous expectations of 4.5% issued in December.