German economic recovery at full swing – ministry

People enjoy their drinks on a terrace of the Revolte-Bar, while cafes, bars and restaurants reopen their terraces after months of closure amid the coronavirus disease (COVID-19) outbreak in Berlin, Germany, May 21, 2021. REUTERS / Christian Mang

BERLIN, July 14th (Reuters) – Germany’s economic recovery from the COVID-19 crisis is in full swing and the outlook for the industry remains positive despite delivery bottlenecks for preliminary products, the Federal Ministry of Economics announced on Wednesday.

“The supply bottlenecks for preliminary products … have a dampening effect, but do not affect the positive basic dynamics of the overall economy”, it says in his monthly report.

The ministry said it expected inflation to rise in the second half of 2021 due to a base effect of a temporary VAT cut last year that was part of the government’s stimulus package to help the economy recover from the coronavirus shock, Will reach 3% or more.

Inflation will ease significantly in 2022, she added.

Reporting from Riham Alkousaa; Editing by Maria Sheahan

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