FRANKFURT– The German economy will gain growth momentum over the next two years and gross domestic product (GDP) will increase by 4.2 percent in 2022 and by 3.2 percent in 2023, the country’s central bank (Bundesbank) said in its projections published on Friday.

Due to the COVID-19-related restrictions and supply bottlenecks, the Bundesbank expects stalled growth for the last quarter of 2021 and the first quarter of 2022.

Once the pandemic-related restrictions are lifted, consumer spending and exports will both increase, the bank said.

Commenting on the projections, Bundesbank President Jens Weidmann warned of the risks of rising inflation. “Monetary policy makers should not ignore these risks. We need to be vigilant,” he said.

The central bank expects the inflation rate in Germany to reach 3.2 percent in 2021 and rise further to 3.6 percent in 2022 before dropping to 2.2 percent in 2023 and 2024.

The European Central Bank (ECB) also said on Thursday that economic growth in the eurozone is expected to remain strong over the next three years. In its latest staff projections, the ECB expected the eurozone’s real GDP to grow by 5.1 percent in 2021, 4.2 percent in 2022 and 2.9 percent in 2023.