Germany’s BDI industry association said on Tuesday it expected Europe’s largest economy to grow 3.5% this year after plunging roughly 5% in 2020 but that it wouldn’t be able to return to its pre-pandemic level until next year at the earliest.
The BDI forecast is less optimistic than the government’s estimates, published in October, in which Berlin predicted gross domestic product to rebound with an expansion rate of 4.4%.
BDI President Siegfried Russwurm said the economy won’t be able to return to its pre-crisis level in 2021 due to the second wave of the pandemic.
“But there should be a good chance that it will do so in the first half of 2022,” Russwurm added.
The Federal Statistics Office will release a flash estimate for full-year 2020 GDP figures on Thursday. The government will update its GDP growth forecast for 2021 later this month.
BDI said it expected Germany’s export-oriented industrial sector to drive the recovery this year as the global economic outlook for 2021 had improved. The lobby group sees exports jumping 6% this year after plunging roughly 11% in 2020.
“The election of Joe Biden as US President facilitates the path for multilateral solutions and joint initiatives for fair competition on the world markets,” Russwurm said.
