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German GDP will increase by 2.4% in 2021 and by 4.8% in 2022, according to the latest ifo Germany Joint Economic Forecast, reaching normal capacity utilisation some time next year. Consumer prices are expected to rise by 3% across year and by 2.5% in 2022, the forecast suggests. The German government's debt-to-GDP ratio is expected to decline from 71% in 2021 to 67% in 2022.
Germany's GDP has risen significantly since the spring, Ifo notes, but supply bottlenecks continue to hold back manufacturing production, with current growth driven principally by consumer-related services. A further slowdown is expected during the winter regardless of coronavirus infection numbers, but the negative effects of the pandemic and supply bottlenecks are expected to dissipate over the course of 2022.