GDP is expected to expand by 1.9% this year and for the coming year we expect GDP to increase by 2.7%. The further course of economic recovery depends to a large extent on the development of inflation. It is becoming apparent that inflation will only weaken gradually. For exam-ple, the price increases for some raw materials, such as crude oil, are now easing. How-ever, prices for gas, which private households have to pay, are likely to continue to rise sharply in the coming months. Overall, consumer prices are expected to rise by 6.9% on average this year.
The RWI - Leibniz Institute for Economic Research latest economic forecast. After the worst recession since the second World War the global economy is on the path to recovery, yet much uncertainty remains. Due to the prolonged COVID-19 containment measures the rebound is weaker than the projection in the summer. While fresh outbreaks across several Euro Area member states dampen its recovery, the indicators show that the through of the crisis is likely over. Going forward we are in for the rebound for the long haul with economic activity expected to stabilize back to potential growth rates at the earliest towards the summer next year.