The German economy may reach pre-crisis levels this year

The German economy is doing well and, according to leading economists, may reach pre-crisis levels this year. "The German economy is still at a cyclical summer peak, but the zenith of the economic recovery can be over," DPA quotes Katharina Utermöhl, an economist at the Allianz insurance group. The first indicators indicate a cooling in the autumn, but not a fall. Veronika Grimm from the Federal Government's Advisory Economic Commission states that the services sector and private consumption have recovered due to the easing of pandemic measures. However, supply problems, especially for semiconductors, continue to complicate the situation in the industry. "In the second quarter, German industrial production fell despite high demand," the economist said. It hit the car industry hardest. Nevertheless, Grimm expects strong economic growth and could reach the cross-crisis level by the end of the summer. "If supply problems in industry and construction do not worsen or even alleviate, full order books can increase production." Utermöhl also expects above-average growth in the coming quarters, despite supply difficulties, cooling demand abroad and the growing risk associated with the Delta mutation. According to her, economic growth could reach 3 percent this year and 4 percent next year. Favorable economic developments will have a positive effect on the labor market. "The exchange rate regime has fallen sharply in recent months," said Deutsche Bank economist Jochen Möbert. The number of vacancies reached the pre-crisis level and the number of employees increased significantly. In August, the economist expects a seasonally adjusted decrease in the number of unemployed by about 70,000 people.