German industry still waiting on post-virus boom amid shortages

German industry still waiting on post-virus boom amid shortages

AFP

FRANKFURT: Germany was yet to see any signs of a “post-coronavirus boom”, the head of the influential BDI industry lobby said Thursday, as persistent supply chain issues weighed on the economy.
Bottlenecks which have plagued manufacturers in Europe’s largest economy through 2021, were set to continue into the new year, the group predicted, with consequences for growth. Supply disruptions would cost industry “more than 50 billion euros ($57 billion) in both 2021 and 2022”, BDI head Siegfried Russwurm said in a press conference. “Despite full order books, a lack of microchips, components and raw materials will continue to affect production for a long time,” Russwurm said. Germany’s traditionally strong manufacturing sector has suffered particularly badly at the hands of supply shortages caused by the pandemic. The continued ups and downs of the coronavirus pandemic added to the economy’s woes with German GDP still struggling to reach its pre-crisis level of February 2020.
“The hoped-for post-corona boom is not on the cards,” Russwurm said, while the spread of the more transmissible Omicron variant of the virus posed a new threat were it to lead to significant new restrictions around the world.