Germany’s economy continues to recover at a slow pace, the Ministry for Economic Affairs and Energy said in its monthly report for September on Monday.
“The catch-up process in the German economy continues but has recently weakened. The recovery is likely to continue as the year progresses,” the ministry noted. It does not expect the German economy to reach pre-crisis levels before early 2022.
The German automotive sector, including suppliers, has also grown at a slower pace after a “dynamic recovery” in the previous months. Production in this sector has reached almost 90 percent of the pre-coronavirus levels.
The country’s mechanical engineering sector, which according to the ministry has been “particularly affected by the consequences of the global coronavirus pandemic,” has recently reported a decline to around 87 percent of pre-COVID-19 levels.
According to the German Economic Institute’s (IW) forecast published on Monday, global gross domestic product (GDP) would drop five percent this year before increasing by six percent in 2021.
Although China was the only major economy to grow in 2020, “it remains to be seen whether China will be able to escape the adjustment burdens of an overall weak global economy,” the IW noted.