The growth of the German economy is likely to slow significantly

The growth of the German economy is likely to slow significantly in the last quarter of this year. The German central bank said in a recent monthly report on Monday that the key industry continues to pay for supply chain problems and, in addition, demand for services is falling. In the summer, the largest European economy prospered to a large extent, but the subsequent problems in the supply of raw materials and components significantly affected the German automotive industry, economists said. In addition, they added, high energy costs and ongoing concerns over the new coronavirus pandemic may worsen consumer sentiment. "Economic growth is likely to slow significantly this quarter," the Bundesbank said. At the same time, she added that growth for the whole of 2021 will most likely be "significantly" below 3.7%. This is the full-year growth rate set by the Bundesbank in the previous June forecast. Within the German economy, the automotive industry is currently facing the biggest problems, paying for the persistent shortage of semiconductors. According to economists, this problem may continue next year, which would mean that economic growth will be under pressure in the coming months. In addition to manufacturing, the services sector will continue to face difficulties, as part of the anti-pandemic measures are likely to remain in force. The number of patients at COVID-19 is growing again, already exceeding the levels from previous periods, which were enough to reintroduce restrictions. Due to supply problems as well as rising energy prices, the Bundesbank added that consumer prices will continue to rise. "The inflation rate is likely to accelerate for some time," the German central bank said, adding that it expected a gradual slowdown in consumer price inflation next year.