1 minute ago by Reuters1 minute ago by Reuters1 minute ago by Reuters1 BERLIN, 14 JULY (Reuters) – Germany’s economic recovery from the COVID-19 issue is well underway, and despite supply bottlenecks for intermediate items, the outlook for the sector remains bright, according to the German Economy Ministry. “While supply bottlenecks for intermediate items have a dampening effect, they do not impede the overall economy’s favorable underlying dynamic,” the ministry wrote in its monthly report. Due to a base effect from a temporary VAT drop last year as part of the government’s stimulus effort to help the economy recover from the coronavirus shock, the ministry forecasts inflation to reach 3% or higher in the second half of 2021. Inflation will be much lower in 2022, according to the report. (Riham Alkousaa contributed reporting, and Maria Sheahan edited the piece.)/n
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