German government expects recession in 2023 – Reuters

Eren Sengezer FXStreet

The German government expects the Gross Domestic Product (GDP) to contract by 0.4% in 2023, Reuters reported on Thursday, citing a source who has knowledge of provisional figures of the government's autumn projections.

The government is also said to lower the 2022 growth forecast to 1.4% while projecting inflation at 7.9% and 8% in 2022 and 2023, respectively.

A spokesperson for the German economy ministry noted that figures were not finalized and that they would present the latest projections next week.

Market reaction

The EUR/USD pair showed no immediate reaction to this headline and was last seen posting small daily losses at 0.9870.

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.

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