The economic upswing in Germany has not yet gathered pace, as the coronavirus pandemic continues to cause business widespread uncertainty, industry leaders said on Thursday as they presented their overview of the year ahead.
The president of the German Federation of Industries (BDI), Siegfried Russwurm, said in Berlin that the order books were full, but production was not able to keep pace with demand.
With pandemic-related restrictions and supply bottlenecks affecting many sectors, it is threatening to be another "stop-and-go year" for the economy, he said.
Companies in the automobile, electrical and mechanical engineering industries in particular are suffering from supply bottlenecks, which the BDI predicted would slow down value creation by more than 50 billion euros (57 billion dollars) in the year ahead.
A lack of microchips, components and raw materials would continue to affect production for a long time.
The BDI was "cautiously optimistic" about the economic recovery, Russwurm said, and expected economic growth of 3.5 per cent this year, after an estimated 2.5 per cent last year.
According to the forecast, German exports will increase by 4 per cent this year, just half as much as last year.
The BDI continues to expect a production increase in industry of 4.5 per cent this year, bringing overall production levels to about 6 per cent below 2018 levels.
Russwurm said the pandemic was still the defining issue for businesses and causing widespread uncertainty.
The hoped-for "post-coronavirus boom" had not materialized, he said.
Source: DPA
