Sumary of German economy set for post-pandemic bounce in growth and prices, Bundesbank says:
- Kaufinger Strasse stores are seen closed due to the coronavirus disease (COVID-19) pandemic in Munich, Germany, February 5, 2021..
- REUTERS/Michaela Rehle/File Photo German output is rebounding from its pandemic-induced slump and inflation could rise faster than currently expected, potentially affecting behaviour in the economy, the German central bank said on Friday..
- It now expects the German economy to reach pre-pandemic levels as soon as next quarter, growing by 3.7% this year, 5.2% next year and 1.7% in 2023..
- The German central bank also raised its forecasts for inflation for this year and the next, warning there were still “upside risks”..
- “The exceptionally high inflation rates, by German standards, projected for the second half of 2021 could ultimately shift economic agents’ inflation perceptions and expectations,”…