German Govt revises 2020 GDP forecast to -5.8% vs -6.3% previous

Dhwani Mehta FXStreet

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.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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