ifo Economic Forecast Spring 2021: German Economy Staggering into Third Coronavirus Wave

Coronavirus infection levels picked up noticeably in fall 2020 and have recently accelerated again. As a result, the economic recovery originally expected in spring 2021 has been pushed back until later in the year. Gross domestic product is expected to grow by 3.7 percent this year and 3.2 percent next year. Compared with the ifo Economic Forecast Winter 2020, this means the growth rate has been lowered by 0.5 percentage points for 2021 and raised by 0.7 percentage points for 2022. Looking at the combined economic output for the years 2020 to 2022, the costs of the coronavirus crisis amount to EUR 405 billion according to this forecast.