Bundesbank ups 2021 GDP, inflation forecast
|
Germany’s central bank, Bundesbank, said that the economy is on track to overcome a pandemic-related crisis this year, as it upgraded its GDP and inflation forecasts for 2021 and 2022.
The central bank chief Jens Weidmann said that economic forecasts are based on successful vaccination campaigns in the country. "This ensures strong catch-up effects, especially in the service sectors that were previously particularly impaired and in private consumption," he noted.
Key takeaways via Reuters
“German economy to grow by 3.7% this year, above an earlier forecast for 3%, while for next year it raised its growth projection to 5.2% from 4.5%. In 2023, it sees growth at 1.7%.”
“Inflation is now seen at 2.6% this year, up from 1.8% seen previously. Inflation will then slow to 1.8% next year and 1.7% in 2023.”
Market reaction
EUR/USD remains unfazed by the upbeat German economic assessment, as it trims gains to now trade at 1.2183 amid a tepid bounce attempted by the US dollar across the board.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.