The Federation of German Industries (BDI) warned that the pandemic could lead to another "year of lockdowns" and said that German GDP could increase by 3.5% this year. Meanwhile, the government expects the economy to expand by 4.1% in 2022.
"We see evidence that production is unable to meet demand, as restrictions due to the pandemic and disruptions in the supply chain negatively affect a significant part of the economy," said the president of BDI.
Meanwhile, BDI expects that export growth has slowed sharply this year and will amount to about 4% amid problems with the supply of microchips and other important components.
"The Omicron coronavirus strain is clouding the growth prospects, and there is a risk that China, which is Germany's largest trading partner, will be blocked again in the event of a significant increase in coronavirus cases," said the president of BDI, who supported Chancellor Scholz's calls to improve the relatively low vaccination rate in Germany.