German engineering sector sees production growing by 2% in 2021: VDMA

FILE PHOTO: Welding robots are pictured in a Golf VII production line at the plant of German carmaker Volkswagen in Wolfsburg, Germany May 20, 2016. REUTERS/Fabian Bimmer/File Photo

BERLIN (Reuters) - German engineering firms expects production to decline by 17% this year before growing by 2% in 2021 due to the impact of the coronavirus pandemic and protectionism in international trade, business association VDMA said on Tuesday.

The lobby group also said changes in the automobile industry were weighing on the sector.

VDMA said the forecast of 2% growth for next year was based on the assumption that the pandemic would not paralyse markets and supply chains again and that important markets would not get dragged into further trade wars.

Reporting by Thomas Seythal; Editing by Michelle Adair