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Berlin Oct 14 (Reuters) – Germany’s top economic institutes on Thursday cut their joint forecast for 2021 growth in Europe’s largest economy to 2.4% as supply bottlenecks continue to hamper manufacturing, while lifting their expectations for next year significantly.
The five institutes – the RWI in Essen, the DIW in Berlin, the Ifo in Munich, the IfW in Kiel and Halle’s IWH – raised their 2022 forecast to 4.8% from 3.9%, saying the economy would reach normal capacity utilisation over the course of the year as the impact of the coronavirus pandemic gradually eased.
Reuters first reported https://www.reuters.com/business/german-economic-institutes-cut-2021-growth-forecast-24-sources-2021-10-13 on Wednesday that the institutes planned to cut their forecast for 2021, which had stood at 3.7%.
“The challenges of climate change and the foreseeable lower economic growth due to a shrinking labour…