German government cuts 2022 Economic growth forecast to 3.6% from 4.1%

Germany’s economy ministry on Wednesday cut its growth forecast for this year to 3.6% from the October estimate of 4.1%. Still, it said that Europe’s biggest economy remains “robust” and will return to its pre-pandemic growth in 2022.

According to preliminary official figures, GDP grew 2.7% last year, but the uncertainty levels were high after the new wave of covid-19 infections by the new omicron variant.

But there are hopes that the German economy will improve during 2022, and the German government expects 2022 GDP growth to be entirely driven by domestic demand and local investments.

The German government also expected consumer price inflation to accelerate to 3.3% in 2022 from 3.1% in 2021 and higher wage demands in 2022.