ifo Institute Estimates German Industry Production Losses at EUR 40 Billion
The ifo Institute estimates that German industry has lost nearly EUR 40 billion to date in value added due to supply bottlenecks. “That’s a good 1 percent of Germany’s total economic output in one year,” says Timo Wollmershäuser, Head of Forecasts at ifo. “The current situation is absurd: despite full order books, industrial production has been shrinking since the beginning of the year. It’s experiencing a bottleneck recession.”
Wollmershäuser adds: “This sand in the gears of the German economy is also hampering the overall economic recovery. For the fourth quarter of 2021, the ifo Institute now expects growth of only 0.5 percent instead of the previous 1.3 percent.” As of this morning, Germany’s Federal Statistical Office estimated third-quarter growth to be 1.8 percent.
Staff Statement in the Media
Timo Wollmershäuser, Sand im Getriebe der Industrie hemmt die Erholung, Münchner Merkur, 29 October 2021
