Germany Slashes 2022 GDP Outlook

Germany slashed its outlook for this year’s economic growth as the Omicron-driven surge in COVID-19 cases holds back activity and businesses.

The government cut its 2022 outlook for gross domestic product to 3.6 percent growth, down from 4.1 percent in a previous forecast.

“The consequences of the corona pandemic are still noticeable and many companies still have to struggle with them,” Economy Minister Robert Habeck said in a statement. “Nevertheless, our economy is still robust.”

Habeck said that they will continue aid programs for companies and furlough policies amid bottlenecks caused by the pandemic.

“With an increasing vaccination rate, it should soon be possible to contain the pandemic in a sustainable manner and to reduce crisis aid. Then the economic recovery will accelerate noticeably,” said the minister.

In December, the Bundesbank central bank predicted that Europe’s largest economy would grow 4.2 percent this year.

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