Germany trimmed its prediction for economic growth this year to 3% due to an extension of coronavirus lockdown restrictions that’s expected to weigh on activity in the first quarter.
The government cut its forecast of 4.4% made at the end of October, according to a person familiar with its annual economic report to be published next week. Germany entered a partial shutdown — including the closing of non-essential stores — at the start of November and it has since been tightened and extended until at least mid-February.
Economy Minister Peter Altmaier is due to present the latest report at a news conference on Wednesday. Europe’s biggest economy has not suffered as much as some countries from the effects of the coronavirus crisis, in part thanks to generous government support.
Growth of 3% next year — which is in line with the Bundesbank’sprediction — would follow a contraction of 5% in 2020, and most forecasts indicate that the economy will take until 2022 to recover the ground lost because of the pandemic.
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