Ifo economist says virus, bottlenecks hit German economy

© Reuters. FILE PHOTO: A woman wearing a mandatory protective face mask passes by a heart-shaped ginger bread reading “Merry Christmas” at the Christmas market, as the spread of the coronavirus disease (COVID-19) pandemic continues, in Frankfurt, Germany, November 2

BERLIN (Reuters) – German retailers are suffering from the impact of a fourth wave of the coronavirus pandemic, half of manufacturers are expecting price increases and industry export expectations have fallen, Ifo economist Klaus Wohlrabe said on Friday.

“Father Christmas has fewer presents for the German economy this time, partly because not everything can be delivered,” Wohlrabe told Reuters.

“Procurement problems for raw materials and intermediate products have worsened,” he said, but added expectations in the industrial sector have risen as order books continue to fill: “That is a silver lining on the horizon.”