IWH lowers Germany’s GDP forecast this year

The German IWH Institute for Economic Research cut its 2021 growth forecast for Europe’s largest economy to 3.7% from the 4.4% it had forecast in December as the country faces the risk of a third wave of the Coronavirus pandemic.

“For Germany in particular, there is a risk that the steps decided at the beginning of March to open up (the economy) will cause a third wave of cases,” the institute said.

However, the institute’s expectations are more optimistic than the government, which predicted that growth this year will be at 3% after a decline of 4.9% last year.