Germany slashes growth forecast to just 2.6% compared to UK's 6.5%

Asia's Tech News Daily

Germany slashes growth forecast to just 2.6% compared to UK's 6.5%
© Provided by Daily Mail MailOnline logo

The German economy will grow just 2.6 per cent this year as the country’s Covid recovery stumbles, forcing economists to slash their forecasts. 

Economy Minister Peter Altmaier broke the bad news Wednesday, saying Germany will miss the 3.5 per cent forecast earlier this year due to supply chain issues that have slowed some industries to a crawl.

He spoke as UK Chancellor Rishi Sunak revealed Brexit Britain is on track to grow 6.5 per cent this year and return to pre-pandemic levels before 2022, three months earlier than Germany.

The UK is among the fastest-growing economies in the G7 thanks to a rapid pandemic recovery driven by its world-beating vaccine roll out.

Without Brexit, it is likely the UK would have been locked into Brussels’ vaccine programme which was slower to get going and meant the EU had to wait longer to lift virus restrictions holding its economy back.

Germany slashes growth forecast to just 2.6% compared to UK's 6.5%
© Provided by Daily Mail (

Mr Altmaier said he does not expect another Covid lockdown in Germany this winter, but added that rising case rates could still have ‘negative economic consequences’.

Economists from major think-tanks – including the OECD – have credited the UK’s rapid recovery to its vaccine progamme and economic reopening.  

Meanwhile Europe’s slow-paced Covid recovery has hurt its economy, but Altmaier’s downgrade on Wednesday was not directly due to the pandemic.

Instead, he blamed global supply chain issues caused as economies reopen following a year of low productivity.

Shortages of raw materials and components have combined with a gas shortage to slow down production lines and drive prices up, Mr Altmaier said. 

As Europe’s manufacturing powerhouse, Germany is particularly vulnerable to these problems. For example, global computer chip shortages have badly affected the country’s car-makers which make up a large slice of its GDP.

Altmaier said the economic recovery will speed up next year – when the effect of lockdowns will have flushed out of the system – with growth of 4 per cent forecast.

That puts Germany on track to recover to pre-pandemic levels by the end of March 2022, three months later than scheduled.

Germany slashes growth forecast to just 2.6% compared to UK's 6.5%
© Provided by Daily Mail (
Germany slashes growth forecast to just 2.6% compared to UK's 6.5%
© Provided by Daily Mail (

By contrast, Britain will reach pre-pandemic levels by the year-end and will continue growing strongly next year – expanding by another 6 per cent. 

The news a much-needed boost for the UK, which suffered one of the deepest Covid recessions of any major economy last year.

A whopping 9.8 per cent of GDP was erased in 2020, according to World Bank figures, while the German economy only slipped 4.9 per cent. 

That is why, despite growing much faster than Germany’s economy, the UK’s is only set to get back into the black three months earlier. 

Germany’s gloomy forecast comes against a backdrop of tough news for the country.  

The German Ifo institute’s closely watched business climate indicator fell for the fourth consecutive month in October, according to figures published this week.

‘Supply problems are giving businesses headaches,’ Ifo president Clemens Fuest said in a statement, describing the bottlenecks as ‘sand in the wheels of the German economy’.

As supplies have dried up, costs have risen, with the prices faced by industry rising by 14.2 per cent year on year in September, a rate not seen since the 1970s.

Meanwhile, other indicators are turning downwards: German exports fell in August for the first time since April 2020, near the start of the pandemic.

Industrial output slumped by four percent in August, too, while new orders fell 7.7 percent.

Under pressure from ‘surprisingly long-lasting bottlenecks in components, raw materials and transport, more forecasts for the economy will be revised downwards’, said Ulrich Kater, chief economist at Deka Bank. 

Germany slashes growth forecast to just 2.6% compared to UK's 6.5%
© Provided by Daily Mail (

The question of how to get the economy rolling again will be at the top of the agenda as the parties seeking to form the next German government pick up talks on Wednesday.

In their initial agreement, the Social Democrats, Greens and Free Democrats (FDP) pledged massive investments and less red tape to prepare Germany for a greener and more digital future.

But they vowed not to introduce any tax hikes and to maintain Germany’s strict debt rule, which limits deficits to 0.35 percent of GDP in normal times, a red line for the FDP.

Finding a way to deliver on both will require ‘creativity’ by the parties’ own admission, and could see the new coalition house their investment programme somewhere else, such as public lender KfW, as per one mooted solution.

Germany’s ‘stuttering economic engine’ was a ‘wake-up call’ for the coalition negotiators, said Joachim Lang, head of the influential German industrial lobby the BDI.

‘Investments are now essential,’ Lang said, calling for faster planning and approval processes, as well as tax reforms.

To avoid ‘choking off’ the recovery, the challenge over the next months – and likely for the next government – was to ‘reduce obstacles and burdens, speed processes up and put the emphasis on innovation’, Altmaier said at the press conference.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related


JNVST 2022: NVS extends Class 6 registration date till December 15

Navodaya Vidyalaya Samiti, NVS has extended the registration process for JNVST 2022 Class 6 admissions. The last date to apply has been extended till December 15, 2021. Candidates who have ... Read more »

Remains of missing Burnett County woman found in Minnesota

Nov. 29—LAKE LENA, Minn. — Human remains found Saturday in eastern Minnesota belong to a Burnett County woman who has been missing since September, Minnesota authorities confirmed Monday. Ashley L. ... Read more »

Sex offender released from prison returning to Bloomer

Nov. 29—CHIPPEWA FALLS — A Bloomer man who was convicted of two counts of possessing child pornography in January 2019 will soon be released from prison, and will be returning ... Read more »

Virgil Abloh death: Drake, Rihanna and Pharrell lead music tributes to ‘genius' Off-White creator

The music world is mourning the death of influential designer Virgil Abloh, aged 41. An announcement from LVMH, the luxury goods conglomerate, revealed the Off White creator and artistic director ... Read more »

Trump's five ‘top picks' for 2024 running-mate revealed - and MAGA fans aren't happy

© REUTERS PRI210876860.jpg Former president Donald J. Trump’s top picks for running mate in the 2024 presidential election have been revealed, and MAGA fans have mixed feelings. In a recent ... Read more »

2GB host Ray Hadley destroys 'cowardly' anti-vax listener live on air - and reveals why Covid deniers will NEVER be allowed on his radio show

Veteran radio broadcaster Ray Hadley lashed out at an anti-vax listener on Tuesday.  The 2GB presenter read an email he had received calling him a ‘coward’ for not allowing conspiracy theorists ... Read more »

2.4M jabs administered on first day of nat'l vax drive vs. COVID-19 —Año

© Danny Pata Over 500K vaccinated on first day of national vax drive The government was able to administer 2.4 million jabs against COVID-19 on Monday, the first day of ... Read more »

Doubling Child Payment may not be enough to hit poverty target, expert warns

© Provided by The Independent The Scottish Child Payment is being doubled to £20 a week from April – but a group that advises ministers warned this may not be ... Read more »

Pope Francis seeks closer Orthodox ties on Greece visit

© Christina ASSI Greece’s Catholic community represents around one percent of the faithful, or slightly more counting recently arrived migrants Twenty years after the last papal visit to Athens sparked ... Read more »

Two more cases of new variant confirmed in Ottawa, as WHO warns of 'very high risk'

© Provided by Ottawa Citizen Hector Addison, who heads the African Canadian Association of Ottawa, wonders why Africa is being singled out for travel bans associated with the Omicron variant. ... Read more »

'Does the Liberal government have a money tree?': Report reveals focus group's thoughts on last federal budget

© Provided by National Post Finance Minister Chrystia Freeland responds to questions from MPs after she delivered the federal budget in the House of Commons on April 19, 2021. OTTAWA ... Read more »

Health officials in New Brunswick report 46 new COVID-19 cases and one death Monday

FREDERICTON — Health officials in New Brunswick are reporting 46 new cases of COVID-19 today and another COVID-19-related death.  © Provided by The Canadian Press They confirmed that a person ... Read more »

As B.C.'s next atmospheric river arrives Tuesday, here's what to expect

B.C. is watching and waiting to see what will happen when the third atmospheric river arrives Tuesday. © THE CANADIAN PRESS/Jonathan Hayward Flood waters coming from the United States is ... Read more »

Inbound shot of snow in southern Ontario may bring travel to a crawl

Southern Ontario is in the middle of a parade of systems that will track across over the next 10 days, with most of them being Alberta clippers just brushing the ... Read more »

Stars Celebrating Hanukkah In 2021

Hanukkah 2021 has officially begun, and the stars are taking to social media to celebrate this year’s festival of lights. © Instagram @bravoandy Andy Cohen Foo Fighters star Dave Grohl ... Read more »

3 Ways Canadian Millennials Can Retire Early

The financial independence, retire early (FIRE) movement has taken Canadian millennials by storm. Recently, more and more people are orienting their lifestyle and finances toward strategies that maximize their savings ... Read more »

Livestream: The Gotham Awards

The Gotham Awards are set to award the best in the independent circuit from Maggie Gyllenhaal’s “The Lost Daughter” to “Squid Game”. © Photo: Dia Dipasupil/Getty Images Marlee Matlin attends ... Read more »

Pengantin baharu maut dalam kemalangan di Pasir Mas

© Provided by Free Malaysia Today kemalangan maut, Pasir Mas, kereta bertembung, pengantin baharu PETALING JAYA: Seorang lelaki yang baru sahaja melangsungkan perkahwinan Jumaat lepas maut dalam kemalangan jalan raya ... Read more »

A Miss USA contestant wore an Ohio State football uniform onstage after the team's big loss to Michigan

© Felipe Espinal/Miss USA Miss Ohio Nicole Wess during the pageant’s State Costume Contest. Felipe Espinal/Miss USA Miss Ohio Nicole Wess paid tribute to the Ohio State football team during ... Read more »

'The Voice': Wendy Moten Performs 'Jolene' With a Broken Elbow and Fractured Wrist

© Trae Patton/NBC/NBCU Photo Bank via Getty Images After taking a scary fall during last week’s live shows, The Voice standout Wendy Moten is back and ready to compete! “I know it’s ... Read more »

'The Voice' Top 10: Watch Lana Scott, Joshua Vacanti, Jeremy Rosado, and Holly Forbes' Live Performances!

© Trae Patton/NBC/NBCU Photo Bank via Getty Images The Voice’s live shows are headed towards the season 21 semifinals — and it’s time to vote for your favorite! On Monday, each of ... Read more »

Trust Yoga instructor charged with molesting 5 female students, to claim trial

© Provided by Yahoo News SINGAPORE — A 32-year-old Trust Yoga instructor was charged on Tuesday (30 November) with molesting five female students over the course of a year. Rajpal ... Read more »

Pope to plead migrant cause on Greece, Cyprus trip

© Filippo MONTEFORTE Francis will return to Lesbos, a key gateway for migrants into Europe where he famously declared in April 2016: ‘We are all migrants.’ Pope Francis heads to ... Read more »

12 Christmas movies and shows to watch on Netflix this December 2021

© Provided by Lifestyle Asia ‘Tis the season for some new Christmas movies. Here are twelve new Christmas TV shows and movies to watch on Netflix this December 2021.  On ... Read more »

Horoscope Today, November 30, 2021: Check astrological predictions for Virgo, Cancer, Pisces and other zodiac signs here

© Provided by Jagran English New Delhi | Jagran Lifestyle Desk: If you are wondering what the day holds for you then scroll down and have a look at your daily horoscope. ... Read more »

Saint Andrew's Day 2021: Check out history, significance and celebration of this day

© Provided by Jagran English New Delhi | Jagran Lifestyle Desk: Saint Andrew was one of the 12 disciples of Jesus Christ. Later he became the patron saint of Scotland, ... Read more »

Utpanna Ekadashi 2021:Check out shubh muhurat, vrat vidhi, significance, puja vidhi and more about this day

© Provided by Jagran English New Delhi | Jagran Lifestyle Desk: There are a total of 24 Ekadashis, and each has a specific name and significance, out of all is ... Read more »

Here's Why Disney+ In Hong Kong Is Missing A Classic Episode Of The Simpsons

20th Century Television March of 2019 saw The Walt Disney Company purchase 20th Century Fox for a whopping $71.3 billion, adding a host of film and television properties to Disney’s ... Read more »

This $65 primer dubbed 'golden hour in a tube' sells every 13 seconds and leaves an instant glow

The Holme Beauty Base Primer deeply nourishes the skin for an instant glow The $65 product sold every 13 seconds for 24 hours after launching It's been dubbed 'golden hour in a tube' by those who have tried it Read more »

Video: Congress returns after Thanksgiving with time running out to avoid December 3 shutdown, prevent defaulting on debts by the 15th and for Dems to get Biden's $1.75T bill through the Senate

Read more »

Steven Spielberg hits the red carpet in a stylish suit with his wife Kate Capshaw at the red carpet premiere of his West Side Story remake

The 74 year old director hit the red carpet with his wife of 30 years Capshaw, 68The filmmaker was seen posing with a number of his stars such as newcomer Rachel Zegler and Ariana Debose at the premiereThe musical remake is adapted from the classic 1957 stage musical by Arthur Laurents, Leonard Bernstein and the late Stephen Sondheim, who passed away over the weekend at 91 years of ageThe film is slated to hit theaters nationwide on December 10  Read more »

Darf YB zum CL-Spiel nach Manchester reisen?

Die Schweiz hat ihre Einreisebeschränkungen aus Grossbritannien verschärft. Muss das Gruppenspiel gegen Manchester United auf «Corona-neutralen» Boden verlegt werden? © Foto: Raphael Moser Ende November 2018 liefen die Young Boys ... Read more »

HaSalon restauranteur opened 12 new restaurants since COVID-19 pandemic started

Chef Eyal Shani — the owner of HaSalon — is set to open his twelfth new restaurant since the beginning of the COVID-19 pandemic. Annie Wermiel/NY Post Ever wonder what ... Read more »

There's no safety in returning to COVID-19 lockdowns

Anthony Fauci said it’s “too early to say” if the new coronavirus variant would lead to more lockdowns. Rod Lamkey / CNP / Polaris The initial reaction from Dr. Anthony ... Read more »

Twitter CEO Parag Agarwal is a Cricket Fan, Check Out His Pictures Celebrating India's 2011 World Cup Title Win

© Provided by News18 Twitter CEO Parag Agarwal is a Cricket Fan, Check Out His Pictures Celebrating India’s 2011 World Cup Title Win India-born Parag Agarwal has succeeded Jack Dorsey ... Read more »

Lionel Messi creates history, surpasses Cristiano Ronaldo to win record seventh Ballon d'Or

Argentina’s Lionel Messi created history and won his seventh Ballon d’Or award for the best player in the world on Monday, beating Robert Lewandowski and Jorginho. © Provided by DNA ... Read more »

Manchester Arena inquiry: Mother of youngest victim Saffie-Rose Roussos urges MI5 to admit ‘failings'

The mother of the youngest victim of the Manchester Arena bombing has urged MI5 and the emergency services to admit their “failings”. © PA Eight-year-old Saffie died in hospital – ... Read more »

Eight reasons we should still have a great Christmas

© Provided by Daily Mail MailOnline logo It has all felt depressingly familiar: with Christmas around the corner, a mutant variant has emerged and alarmist voices are calling for the ... Read more »

Marcos' party defends his candidacy

THE Partido Federal ng Pilipinas (PFP) has backed the eligibility of its standard-bearer, Ferdinand “Bongbong” Marcos Jr., to seek the presidency. The PFP asked the Commission on Elections to dismiss ... Read more »

May polls a reset button for Pinoys – Robredo

© Tabuena May polls a reset button for Pinoys – Robredo MANILA, Philippines — The May 2022 elections are a chance for Filipinos to hit the reset button to ... Read more »
On you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic