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The German government improves its economic growth forecast to 3.5%

The German Government estimates that the national economy will grow 3.5% this year, five tenths more than its forecast in January, thanks to the recovery of industry and exports. The Minister of Economy, Peter Altmaier, presented this Tuesday (04.27.2021) at a press conference the spring forecast of the German Government, which warns of a certain process of dualization of the largest European economy due to the coronavirus pandemic .

Industry and exports have been showing solid performance for months, thanks to external demand, mainly from China and the United States; While services and retail trade do not lift their heads, due to the extension of the restrictions – some imposed in November – to contain the third wave of the pandemic. “Today’s spring screening is encouraging, despite the current worrying infection situation,” Altmaier said. Berlin hopes that once the restrictions are lifted, there will be “a clear resumption of the local economy and private consumption.”

This growth rate is in line with the forecasts of the main centers of economic studies in the country and other recent calculations. The German government’s economic advisory council estimated in March that the country’s gross domestic product (GDP) would grow by 3.1% this year. The joint forecast of the main institutes placed the annual advance at 3.7% in mid-April.

The GDP growth rate in the first quarter is expected to be published this Friday, which the Ministry of Economy itself advanced that could be negative due to the maintenance of the restrictions. Germany’s GDP registered its worst collapse in decades in 2020, falling by 4.9%. (efe / reuters / afp)

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