UPDATE 1-German economic institutes cut 2021 GDP forecast

 UPDATE 1-German economic institutes cut 2021 GDP forecast

(Adds German econ ministry, quote, background)

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…

Read full article…finance.yahoo.com