German Economic Institutes: 2022 GDP growth forecast lowered to 2.7% from 4.8%

Eren Sengezer FXStreet

In a recently published report, Germany's leading economic institutes announced that they lowered Gross Domestic Product (GDP) growth forecast for Germany in 2022 to 2.7% from 4.8% previously, as reported by Reuters.

Additional takeaways

"2023 GDP growth forecast revised higher to 3.1% vs 1.9% previously."

"German CPI seen at 6.1% in 2022, 2.8% in 2023."

"In case of a sudden stop of Russian energy supply, GDP growth seen at 1.9% in 2022."

In case of a sudden stop of Russian energy supply, GDP seen contracting by 2.2% in 2023."

"Cumulative loss of GDP in 2022 and 2023 in event of an energy freeze likely around 220 billion euros, or more than 6.5% of annual economic output."

Market reaction

Germany's DAX 30 is down 0.4% on the day after this publication, reflecting a risk-averse market environment.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD regains balance, targets 1.1800

EUR/USD has lost a bit of momentum after its earlier push higher and is now attempting to reclaim the key 1.1800 barrier on Monday. In the meantime, investors remain focused on the evolving US–EU trade relationship after President Trump’s announcement of sweeping global tariff hikes.

GBP/USD recedes from tops, back to 1.3500

GBP/USD is extending its move higher on Monday, meeting some resistance around 1.3530 on the back of the widespread bearish tone in the US Dollar amid ongoing uncertainty around tariffs. For now, traders are watching overall risk sentiment and central bank rhetoric for the next directional cue.

Gold advances to four-week highs, focus is on $5,200

Gold is holding onto its bullish tone on Monday, hovering near monthly highs well above the $5,100 mark per troy ounce. Fresh trade-war concerns, coupled with rising geopolitical tensions in the Middle East, are keeping demand for the yellow metal well on the rise.

Crypto Today: Bitcoin, Ethereum, XRP intensify sell-off as tariff uncertainty weighs

Bitcoin, Ethereum and Ripple are trading amid increasing selling pressure at the time of writing on Monday, as investors react to fresh trade uncertainty over US President Donald Trump’s push for more tariffs.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

Top Crypto Losers: Zcash, Pump.fun, and LayerZero extended losses as Bitcoin loses $65,000

The cryptocurrency market starts the week in panic mode, with altcoins Zcash, Pump.fun, and LayerZero. Bitcoin falls below $65,000 as the US President Donald Trump regroups amid renewed trade policy risks.