Coronavirus
Surge In Covid Cases, Industrial Bottlenecks Hold Back German Business Optimism
Amid a trying third wave of the COVID pandemic in Germany, a closely monitored indicator of German business outlooks barely rose in April, hinting at a fall in optimism about the economic recovery’s pace in a post-pandemic scenario.
The Munich based Ifo index barely registered an increase of 0.2 points from the previous month’s rating of 96.6. It was also, noted by the Ifo institute that, about 45% of companies reported bottlenecks among suppliers – the most since, 1991. Industries such as the much-vaunted automobile industry in Germany have been forced to hold back production due to a pressing lack of semiconductors.
Economists now expect that the majority of rebound to normal levels, only towards the end of the year as vaccination campaigns gather steam.
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