German government raises 2021 economic growth forecast to 3.5% from 3%
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The German government lifted the 2021 GDP growth forecast to 3.5% from 3.0% estimated in the January outlook, Economy Minister Peter Altmaier confirmed on Tuesday.
Additional takeaways
Expects 2022 GDP growth forecast of 3.6% in the first official estimate.
Expects consumer price inflation to jump to 2.2% in 2021, ease back to 1.5% in 2022.
Forecast based on assumption that virus restrictions are eased during Q2.
Expects economy to reach pre-crisis levels in 2022 at the latest.
Expects strong domestic demand, household spending to support recovery once curbs are lifted.
Market reaction
EUR/USD remains under pressure around 1.2065 on the above headlines, as the euro shrugs off the upward revision to the German growth forecasts.
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