Economic growth is projected to reach 3.3% in 2021 and pick up further to 4.4% in 2022. Virus outbreaks and associated containment measures have delayed the recovery in services, while the export‑focused manufacturing industry is growing strongly despite some supply-chain disruptions. Vaccination will enable a progressive reopening of the domestic economy.
Expansionary fiscal and monetary policies are supporting growth in 2021, but a swifter implementation of government investment plans is needed to maximise the benefits. The rollout of vaccines should continue to be accelerated through coordination between federal and state authorities. Expanded short-time work moderated the increase in unemployment during the crisis, but reabsorption of those on short-time work will slow the decline in unemployment. Training will become increasingly critical as the economy recovers and structural challenges from the energy transition, digitalisation and an ageing population become more pressing.