Pandemic Delays Upswing – Demographics Slow Growth: Summary of the Joint Economic Forecast 1/2021

In Germany, the first year of the coronavirus pandemic was marked by extreme fluctuations in economic activity and a massive paralysis of the domestic economy. Overall, gross domestic product is expected to grow by 3.7 percent this year and by 3.9 percent in the coming year. As a result of the continuing burdens in the wake of the coronavirus pandemic, public budgets are expected to run a deficit in 2021, which, at EUR 159 billion, will be slightly higher than in 2020. Next year it is then expected to fall sharply to EUR 59 billion.