The Prague Post - Germany cuts 2022 GDP growth forecast on virus woes

EUR -
AED 4.243687
AFN 80.258579
ALL 97.948265
AMD 440.592197
ANG 2.067962
AOA 1058.465478
ARS 1362.804464
AUD 1.778285
AWG 2.082842
AZN 1.968988
BAM 1.955765
BBD 2.322859
BDT 140.58751
BGN 1.96051
BHD 0.433992
BIF 3425.439333
BMD 1.15553
BND 1.477574
BOB 7.949859
BRL 6.406145
BSD 1.15048
BTN 98.998247
BWP 15.463726
BYN 3.764933
BYR 22648.378878
BZD 2.310959
CAD 1.569961
CDF 3324.458889
CHF 0.938796
CLF 0.027884
CLP 1070.051049
CNY 8.298556
CNH 8.307576
COP 4778.715365
CRC 579.88973
CUC 1.15553
CUP 30.621533
CVE 110.263047
CZK 24.84493
DJF 204.866372
DKK 7.461301
DOP 67.948797
DZD 150.258339
EGP 57.438983
ERN 17.332943
ETB 155.208151
FJD 2.59792
FKP 0.851372
GBP 0.852443
GEL 3.166602
GGP 0.851372
GHS 11.84979
GIP 0.851372
GMD 81.469282
GNF 9968.823444
GTQ 8.840843
GYD 240.695737
HKD 9.070231
HNL 30.026468
HRK 7.537177
HTG 150.877328
HUF 402.707866
IDR 18834.322544
ILS 4.183484
IMP 0.851372
INR 99.58874
IQD 1507.073308
IRR 48647.793814
ISK 144.037202
JEP 0.851372
JMD 184.196738
JOD 0.819316
JPY 166.518785
KES 148.637368
KGS 101.051502
KHR 4612.918301
KMF 492.837731
KPW 1039.976573
KRW 1579.771091
KWD 0.353847
KYD 0.958683
KZT 590.089549
LAK 24822.560372
LBP 103080.774354
LKR 344.473899
LRD 230.095925
LSL 20.704233
LTL 3.411979
LVL 0.698969
LYD 6.285889
MAD 10.518914
MDL 19.701651
MGA 5194.907994
MKD 61.53391
MMK 2426.268419
MNT 4138.767016
MOP 9.301035
MRU 45.673191
MUR 52.588586
MVR 17.800977
MWK 1994.864669
MXN 21.898152
MYR 4.905805
MZN 73.89655
NAD 20.704233
NGN 1782.335411
NIO 42.33925
NOK 11.454538
NPR 158.397195
NZD 1.920457
OMR 0.444022
PAB 1.15048
PEN 4.152526
PGK 4.805915
PHP 64.814084
PKR 326.153924
PLN 4.273513
PYG 9179.837417
QAR 4.196726
RON 5.027136
RSD 117.197924
RUB 92.187067
RWF 1661.270578
SAR 4.337388
SBD 9.645657
SCR 16.420505
SDG 693.899733
SEK 10.959036
SGD 1.481278
SHP 0.908065
SLE 25.479855
SLL 24230.88081
SOS 657.488355
SRD 43.364756
STD 23917.128362
SVC 10.066822
SYP 15024.024763
SZL 20.690634
THB 37.444978
TJS 11.619594
TMT 4.044353
TND 3.40414
TOP 2.70637
TRY 45.531654
TTD 7.801862
TWD 34.111657
TZS 2973.947329
UAH 47.720955
UGX 4145.926572
USD 1.15553
UYU 47.299162
UZS 14617.741108
VES 118.057029
VND 30130.432615
VUV 137.626073
WST 3.026547
XAF 655.945383
XAG 0.031814
XAU 0.000336
XCD 3.122877
XDR 0.815786
XOF 655.945383
XPF 119.331742
YER 281.198532
ZAR 20.713272
ZMK 10401.156591
ZMW 27.812507
ZWL 372.080039
  • CMSC

    0.0900

    22.314

    +0.4%

  • CMSD

    0.0250

    22.285

    +0.11%

  • RBGPF

    0.0000

    69.04

    0%

  • SCS

    0.0400

    10.74

    +0.37%

  • RELX

    0.0300

    53

    +0.06%

  • RIO

    -0.1400

    59.33

    -0.24%

  • GSK

    0.1300

    41.45

    +0.31%

  • NGG

    0.2700

    71.48

    +0.38%

  • BP

    0.1750

    30.4

    +0.58%

  • BTI

    0.7150

    48.215

    +1.48%

  • BCC

    0.7900

    91.02

    +0.87%

  • JRI

    0.0200

    13.13

    +0.15%

  • VOD

    0.0100

    9.85

    +0.1%

  • BCE

    -0.0600

    22.445

    -0.27%

  • RYCEF

    0.1000

    12

    +0.83%

  • AZN

    -0.1200

    73.71

    -0.16%

Germany cuts 2022 GDP growth forecast on virus woes
Germany cuts 2022 GDP growth forecast on virus woes

Germany cuts 2022 GDP growth forecast on virus woes

The German government on Wednesday lowered its economic growth forecast for 2022 as an Omicron-fuelled surge in coronavirus cases holds back Europe's industrial powerhouse.

Text size:

The country's gross domestic product is now estimated to expand by 3.6 percent, down from 4.1 percent in a previous forecast.

The start of the year "will still be subdued due to the coronavirus pandemic, especially in the service sectors", the economy ministry said in a report.

But the bounce-back in Europe's biggest economy should "noticeably" pick up pace once infections level off and global supply chain frictions ease over the course of 2022.

The ministry's forecast is more pessimistic than that of the Bundesbank central bank, which is pencilling in 4.2 percent growth this year.

Germany, whose export-oriented economy is particularly vulnerable to the global supply chain bottlenecks and raw material shortages caused by the pandemic, has seen its recovery lag behind other major European economies like France and Italy.

The flagship auto industry has been hardest hit, with giants like Volkswagen, BMW and Daimler forced to trim production at some plants over a shortage of semiconductor chips.

- Vaccine mandate -

German gross domestic product (GDP) grew by just 2.7 percent in 2021, official data showed earlier this month, well below the expected European Union average of around five percent.

The country of 83 million people reintroduced curbs on public life in recent weeks to tame a resurgence in Covid-cases, including measures that exclude the unvaccinated from restaurants, bars and non-essential shops.

Germany is nevertheless seeing record numbers of new infections blamed on the highly contagious Omicron variant. The country added another 164,000 cases over the past 24 hours -- an all-time high.

German lawmakers will on Wednesday begin debating the introduction of a vaccine mandate for adults.

The measure is backed by new Chancellor Olaf Scholz, whose government replaced Angela Merkel's cabinet last month, but has divided public opinion and sparked street protests.

Economy Minister Robert Habeck said in the report that "an increased vaccination rate should make it possible to sustainably contain the pandemic" this year and "accelerate the economic recovery".

Consumer spending will be a key growth driver, the ministry said, as businesses gradually resume normal service and meet pent-up demand from customers flush with savings.

Industrial firms can also expect to see higher demand for exports as the global recovery from the pandemic shock continues.

K.Pokorny--TPP