German economy likely to reach pre-crisis level in mid-2022 - ministry

The German economy, Europe's largest, will likely reach its pre-pandemic levels in mid-2022, according to a draft document prepared by the economy ministry and seen by Reuters on Monday.

The world economy's situation, underutilised production capacities and early indicators suggest a further recovery of the German economy, the ministry said in its draft annual economic report.

Germany's budget deficit is seen at 7% this year when compared to gross domestic product, leading to a debt ratio of 72.5%, the ministry said, as Berlin is spending billions of euros to cushion the economic blow of the pandemic.