German industry expects 3.5% GDP growth in 2022

by IANS |

Berlin, Jan 14 (IANS) The Federation of German Industries (BDI) is "cautiously optimistic" about the economic recovery in industry and expects the country's gross domestic product (GDP) to grow 3.5 per cent in 2022, the BDI has said.

German exports are to grow around half as fast as in 2021, increasing by four per cent in 2022 year-on-year, according to the BDI on Thursday, Xinhua news agency reported.

"Order books are full, but production is not keeping pace with demand," BDI President Siegfried Russwurm said.

"Pandemic-related restrictions and supply bottlenecks are affecting large parts of the economy."

Many German companies in the automotive, electrical and mechanical engineering industries are affected by supply bottlenecks, which would slow down industrial value creation by more than 50 billion euros ($57.4 billion) in 2021 and 2022, according to the BDI.

The German economy could "face another stop-and-go year," the BDI noted. However, "with the right framework conditions, there is also a chance that the new year will be the year with the strongest economic momentum since 2010."

High energy costs, slow digital transformation, lack of infrastructure investment and high taxes would make the business location less and less attractive for companies from Germany and abroad, Russwurm added.

"Policymakers must reverse the negative trend of recent years, go beyond crisis management to increase the pace of action and embark on a growth course," he said.

The German Council of Economic Experts, an official advisory body to the German government, expects the country's GDP to grow 4.6 per cent in 2022. Economic growth in Germany should "continue to pick up, provided that industrial output and consumer demand for services normalise next year." (1 euro = $1.15)

Latest News
PM Modi pays tribute to Netaji Subhash Chandra Bose Sun, Jan 23, 2022, 12:02 PM
16 marching contingents, 17 military bands, 25 tableaux on R-Day parade Sat, Jan 22, 2022, 08:22 PM
AAP's Mann challenges Channi to contest against him Sat, Jan 22, 2022, 08:21 PM
AAP's Mann challenges Channi to contest against him Sat, Jan 22, 2022, 08:21 PM
ECI extends ban on physical rallies, road shows till Jan 31 Sat, Jan 22, 2022, 08:21 PM
2 LeT terrorists killed in J&K Sat, Jan 22, 2022, 08:20 PM
Delhi man held for extortion, blackmail on pretext of marriage Sat, Jan 22, 2022, 08:19 PM
Tihar Jail to take action against 82 staff who helped conman Sukesh Sat, Jan 22, 2022, 08:19 PM
Kerala nun rape case: Prosecution to appeal against acquittal of Mulakkal Sat, Jan 22, 2022, 08:18 PM
Akali Dal seeks CBI probe into illegal mining in CM's constituency Sat, Jan 22, 2022, 08:16 PM
Channi had share in mining mafia, alleges Amarinder Sat, Jan 22, 2022, 08:15 PM
Six killed, several hurt in a bus mishap in Odisha Sat, Jan 22, 2022, 08:14 PM
TN govt should ensure completion of NH projects: PMK Sat, Jan 22, 2022, 08:13 PM
Mumbai Police arrests Nigerian national in drug peddling case Sat, Jan 22, 2022, 08:12 PM
Aspirational District Programme leveraged competitive federalism: Amitabh Kant Sat, Jan 22, 2022, 08:11 PM