Supply constraints might restrict Germany’s economic recovery

Supply bottlenecks in the supply of raw materials could possibly cap Germany’s economic recovery from the coronavirus crisis. The prediction remained probable as two-thirds of the country’s overall sectors reported limitations, private data showed.

40% of industry groups reported severe short-term supply bottlenecks, a report from the German Economic Institute revealed. The country’s car, plastics, textile, leather, and construction industries reported heavy constraints as most of them suffered from microchips and wood insufficiency.

The institute’s report emphasized the possible problems that might arise as rapid vaccination fuels economic recovery. “Especially with social and economic normalisation once again on the agenda thanks to progress on vaccination unleashing pent-up consumer demand, these bottlenecks could slow the recovery,” the report said.