German central bank optimistic about recovery

For the third quarter, the bank predicted that if the above caveats were maintained, Germany would achieve pre-pandemic levels of real GDP, the report also said. [Shutterstock/Savvapanf Photo]

Germany’s economy is set to accelerate even more than in the second quarter of 2021 if the pandemic does not create “significant setbacks” and if supply shortages can be overcome at least in part, according to the central bank’s monthly report published Monday.

For the third quarter, the bank predicted that if the conditions were maintained, Germany would achieve pre-pandemic levels of real GDP, the report also said.

The bank also noted the significant growth of the German economy in the second quarter thanks to the resurgence of the service industry.

The construction sector has also seen a boost, despite massive price hikes for building materials, especially wood, in 2021 due to large demand in China.

The car manufacturing industry, however, has been struggling as supply shortages have resulted in significant loss of turnover and massive delays.

(Nikolaus J. Kurmayer  | EURACTIV.de)

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