GERMANY expects growth to be significantly weaker than predicted this year, as the lingering effects of the pandemic and a supply squeeze hinder a revival of Europe’s biggest economy. The cut in the 2021 outlook to 2.6 percent, compared with a prediction of 3.5 percent published at the end of April, reflects a scarcity in some raw materials and rising energy prices, particularly for gas, Economy Minister Peter Altmaier said yesterday in an interview with ARD television. The government expects a “boom” to take effect only next year, and has raised its forecast for 2022 gross domestic product growth to above 4 percent from 3.6 percent, added Altmaier. “The precondition is that we stabilize international supply chains, and, for example, make sure that more of the chips that are built into almost every device, especially cars, are produced,” Altmaier said. Germany has struggled to maintain growth momentum in recent months, with its manufacturing-heavy and export-dependent economy particularly exposed to supply disruptions. Gauges of business and investor confidence have been declining steadily, and surveys suggest weakness is spilling into the services sector as rising energy prices dent consumer confidence and crimp spending. (SD-Agencies) | 