(ANSA-AFP) - FRANKFURT AM MAIN, OCT 14 - Global shortages in
industrial components and raw materials have cramped Germany's
export driven economy, prompting the country's leading economic
institutes to slash their forecast for growth this year on
Thursday. In their biannual forecast, the research groups
revised down the estimate for 2021 to 2.4 percent, from their
earlier prediction of 3.7 percent made in April. "The
corona(virus) pandemic still shapes the economic situation in
Germany," the institutes (DIW, Ifo, IfW, IWH and RWI) said in a
joint statement, preventing a return to normal economic
activity. After rapid growth in spring, the German economy had
been held back by supply bottlenecks "hampering manufacturing"
and meant that "only the consumer-related service industries are
growing", the institutes said. Together the institutes expect
pandemic effects and shortages to be "gradually overcome" in
2022, raising their forecast for growth in the year to 4.8
percent from 3.9 percent. (ANSA-AFP).
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