Germany Economic Snapshot

Economic Forecast (June 2022)

The economy is projected to grow by 1.9% in 2022 and 1.7% in 2023, with the recovery hampered by the war in Ukraine, and an embargo on Russian oil. Rising inflation is reducing household purchasing power, damping the rebound of private consumption. Investor and consumer confidence have collapsed and supply chain bottlenecks have worsened, postponing the recovery of industrial production and exports towards the end of 2022, despite a large order backlog. The recovery could be further derailed by a sudden stop of gas imports from Russia or more persistent lockdowns in China.

Going for Growth: Economic Policy Reforms (April 2021)

Going for Growth 2021 - Germany

The pandemic is likely to accelerate digitalisation with new business models and increases in demand for teleworking, telehealth services and remote learning. The energy transition requires changes in behaviour, consumption and production. In order to face these challenges while supporting the recovery, Germany needs to boost investment in infrastructure and knowledge-based capital, revive business dynamics and address skills bottlenecks.

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2021 Structural Reform Priorities

  • Infrastructure: Boost infrastructure investment
  • Competition and regulation: Promote reallocation by removing barriers to firm growth and incentivising investment in expanding industries
  • Education and skills: Strengthen skills to cope with technological change
  • Labour market: Make it easier for parents to choose flexible working hours
  • Tax system: Reduce tax wedges on labour income and shift taxation towards less distortive taxes


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Economic Survey of Germany (December 2020)

Executive Summary