Our Magazine
Brussels Morning Online Newspaper
Tuesday, January 19, 2021
No Result
View All Result
  • Home
  • EU institutions
    • Commission
    • Parliament
    • Council
  • Europe
  • World
  • Economy
  • In Depth
    • Ambassador’s Corner
    • The American Angle
    • Europe With Transparency
    • Sustainable Perspective
    • Place de la Bourse
    • The Macro-Economist
    • Southeast Europe
  • Culture and Society
Brussels Morning Online Newspaper
  • Home
  • EU institutions
    • Commission
    • Parliament
    • Council
  • Europe
  • World
  • Economy
  • In Depth
    • Ambassador’s Corner
    • The American Angle
    • Europe With Transparency
    • Sustainable Perspective
    • Place de la Bourse
    • The Macro-Economist
    • Southeast Europe
  • Culture and Society
Brussels Morning Online Newspaper
No Result
View All Result
Home Economy

German industry expects lower GDP growth than government

Nikola Kiš by Nikola Kiš
13 January 2021
in Economy
German industry expects lower GDP growth than government

German economy in decline as it struggles to cope with the COVID19 Economic crisis

Share on FacebookShare on Twitter

Brussels (Brussels Morning) The Federation of German Industries (BDI) expects the economy to grow 3.5% this year in contrast with the German government’s prediction of 4.4% from October last year, Reuters reports.

The Federal Statistical Office is to release an estimate of 2020 GDP on Thursday, while the government will update its 2021 growth forecast later this month.

BDI’s predictions

BDI head Siegfried Russwurm predicted that German GDP would not return to pre-crisis levels this year given the continuing negative epidemiological trends, but he noted that it could do so in the first half of 2022.

“Our companies will benefit from both China, the driver of global growth, and the agreement on an investment pact, even if it is not perfect,” Russwurm noted.

BDI expects the country’s industrial sector that is focused on exports to be the main force for economic growth this year, predicting annual growth of exports of 6% this year, in contrast to a decline of approximately 11% last year.

Calling on the government to implement mechanisms to offset job losses, the industry group warned that the introduction of CO2 price levies could drive some sectors to countries with more lenient environmental protection rules. In addition, BDI called on the government to up public investments in infrastructure, to lower corporate taxes and to remove bureaucratic obstacles for companies that invest in innovation.

Scholz’s comments, Ifo predictions

Also on Tuesday, Germany’s Minister of Finance, Olaf Scholz, commenting on the impact of lockdowns on the economy, insisted the negative effects are not too severe and assured that the government would provide aid where needed. 

Germany announced a stimulus package worth 130 billion euro in June last year, one of the largest fiscal responses to the coronavirus crisis by any Western country.The Ifo Institute for Economic Research lowered its GDP growth forecast last month from 5.1% to 4.2%. Other private forecasters have also found the government’s outlook overly optimistic, citing the new lockdowns in making their case.

Tags: GDP growthGerman industry
Nikola Kiš

Nikola Kiš

Nikola is Brussels Morning political affairs reporter, covering Germany, France, and Italy. Based in Zagreb, he is a translator with 18 years of experience reporting on political and business affairs.

Latest post

The political crisis has reached irresponsible levels — the EU needs a strong and stable Italy

The political crisis has reached irresponsible levels — the EU needs a strong and stable Italy

1 min ago
US imposes sanctions on Russian Nord Stream 2 pipe-laying ship

US imposes sanctions on Russian Nord Stream 2 pipe-laying ship

9 mins ago

Most Read

  • Italy’s cannabis industry could rival the legal market in the US

    Italy’s cannabis industry could rival the legal market in the US

    0 shares
    Share 0 Tweet 0
  • Can Armenia and Azerbaijan win peace together?

    0 shares
    Share 0 Tweet 0
  • The West cannot meet Russia half way

    0 shares
    Share 0 Tweet 0
  • How Emiratis shape the European defense agenda

    0 shares
    Share 0 Tweet 0
  • How EU trade and investment deals can fight climate change

    0 shares
    Share 0 Tweet 0

Subscribe
Facebook Twitter Youtube LinkedIn

About Us

Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.

Category

  • Ambassador’s Corner
  • Commission
  • Council
  • Culture and Society
  • Diplomacy
  • Economy
  • EU Institutions
  • Europe
  • Europe With Transparency
  • Features
  • In Depth
  • Member States
  • Middle East Eye
  • Opinion
  • Our pick
  • Parliament
  • Place de la Bourse
  • Southeast Europe
  • Sustainable Perspective
  • The American Angle
  • The Macro-Economist
  • Uncategorised
  • US Elections
  • World

More info

  • About Us
  • Advertising
  • Cookies Policy
  • Contact Us
  • FAQ
  • Jobs

Brussels Morning Newspaper - All Rights Reserved © 2020

No Result
View All Result
  • Home
  • EU Institutions
    • Parliament
    • Commission
    • Council
  • Europe
  • World
  • Member States
  • Economy
  • Culture and Society
  • In Depth
    • Ambassador’s Corner
    • Europe With Transparency
    • Place de la Bourse
    • The Macro-Economist
    • Sustainable Perspective
    • The American Angle
    • Southeast Europe
  • Magazine

Brussels Morning Newspaper - All Rights Reserved © 2020

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.