German central bank lowers growth forecast for 2021, 2022

ANKARA

Germany's central bank lowered its economic growth forecast for 2021 and 2022, according to a report released on Friday.

Bundesbank now estimates that the German economy will grow 2.5% this year and 4.2% next year, down from previous projections of 3.7% and 5.2%, respectively.

"The German economy will experience a setback in the final quarter of 2021 and the first quarter of 2022 on account of the pandemic, but is set to pick up significant momentum again in spring of next year," the statement said.

"The upswing has been slightly delayed," Bundesbank President Jens Weidmann said at the presentation of current projections.

Bundesbank raised its inflation forecast, citing a sharp increase in energy commodity prices on the international markets.

Inflation is now expected at 3.2% for 2021 and 3.6% for 2022, up from previous estimates of 2.6% and 1.8%, respectively.