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Germany cuts 2021 growth outlook as supply problems, energy prices bite

FILE PHOTO: German Economy Minister Peter Altmaier speaks to the media outside the Chancellery in Berlin, Germany, July 14, 2021. REUTERS/Annegret Hilse

BERLIN (Reuters) – The German government cut its economic growth forecast for this year to 2.6% and lifted its estimate for next year to 4.1% as supply bottlenecks are delaying the recovery in Europe’s largest economy, the economy ministry said on Wednesday.

Confirming an exclusive Reuters report from Tuesday, Economy Minister Peter Altmaier told reporters that the economy was intact, but that supply chain disruptions and a spike in energy prices were complicating the recovery.

The revised government forecast for gross domestic product growth compares with an April prediction for the economy to grow by 3.5% in 2021 and by 3.6% in 2022.

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