The German economy is recovering slowly from the pandemic, with a predicted growth of 2.1% in 2021. Global supply chain issues are hindering production despite high demand. The personal services sector is weakening as infection rates rise again. If supply chain problems are resolved in 2022, industry is expected to grow by 4.9%. Inflation is currently at 3.0% due to higher oil prices and tax changes, but is expected to decrease in 2022.