Breaking: German Prelim GDP contracts -2.2% in Q1 vs. -2.2% expected, EUR/USD unfazed
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- German GDP arrives at -2.2% QoQ in Q1 vs. -2.2% expected.
- Annualized German GDP stands at -1.9% in Q1 vs. -1.6% expected.
The German economy showed contraction inter-quarter in the first quarter of 2020, arriving at -2.2% against expectations of -2.2%, the preliminary report by Destatis showed this Friday.
Meanwhile, the yearly rate dropped by 1.9% in Q1 as compared to the previous reading of +0.3% and missed market expectations of -1.6% contraction.
The Q2 GDP outlook looks bleak, with the influential IFO institute forecasting a decline of 12.2%, downwardly revised from their previous estimate of a 9.8% fall.
About German Prelim GDP
The Gross Domestic Product released by the Statistisches Bundesamt Deutschland is a measure of the total value of all goods and services produced by Germany. The GDP is considered as a broad measure of the German economic activity and health. A high reading or a better than expected number has a positive effect on the EUR, while a falling trend is seen as negative (or bearish).
EUR/USD unfazed
The shared currency showed little reaction to the mixed German growth numbers, with EUR/USD holding the higher ground near 1.0815 region. The focus now remains on the Eurozone Prelim GDP data.
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