Germany’s Economy Minister Peter Altmaier presented the latest government economic forecasts for this year, revising up the GDP estimate to -5.8% vs. the previous forecast of -6.3%.

Key takeaways

“Govt revises 2021 GDP forecast to +4.4% vs the previous forecast of +5.2%.”

“We currently see V-shaped development of economic recovery.”

“Don't expect another coronavirus lockdown like in march and April.”

“We'll reach the pre-pandemic level at the beginning of 2022.”

“Expect exports to decline by 12.1% in 2020, then rise by 8.8% in 2021.”

“We managed to limit the impact of pandemic on economy, labor market with strong state response.”

“Private consumption seen falling by 6.9% in 2020, then rising by 4.7% in 2021.”

“Biggest risk for the German economy is the world economy.”

“US coronavirus infection numbers are worrying.”

Earlier today, Bloomberg reported a source, citing that the German government will bump up its forecast for 2020 gross domestic product to a decline of less than 6%.

EUR/USD remains below 1.2000

Despite the upbeat German growth forecasts, the common currency remains a little impressed amid a drop in the Eurozone annualized CPI.

At the time of writing, EUR/USD adds 0.28% to trade at 1.1968.

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