German Govt Revises 2021 Growth Forecast Up After Strong Fourth Quarter

• The German government has raised its growth forecast for this year to 3.5%, compared with the 3% growth it was expecting back in January, a source said, adding that the upward revision was justified by a stronger-than-expected fourth quarter.
• The source added that the government expected Europe's largest economy to expand by 3.6% in 2022. The economy ministry declined to comment on the figures. The government is due to present its 2021 economic growth forecast on Tuesday.
• Germany's leading economic institutes said earlier this month they expected the gross domestic product to grow by 3.7% this year and 3.9% in 2022.
• German business morale improved only slightly in April as the third wave of COVID-19 infections and a semiconductor shortage in the motor vehicle sector slowed recovery in Europe's largest economy, a survey showed on Monday.
• Export-oriented manufacturers are currently benefiting from higher demand from China and the United States, whereas domestically-focused services are suffering under extended restrictions to contain the third wave of COVID-19 infections.

(Source: Reuters)