Germany’s BDI lowers 2021 GDP forecast to 3.0% from 3.5%

Dhwani Mehta FXStreet

Germany’s Bundesverband der Deutschen Industrie (BDI), a powerful industry association, slashes the economic growth forecasts for this year to 3% from 3.5% due to ongoing lockdown measures in Europe's biggest economy.

Additional quotes

“The industry association sees industrial production growth of 8% in 2021.”

“The association raises forecast for export growth to 8.5% from previous forecast of 6%.”

Separately, Germany’s VDMA President Karl Haeusgen said, "we are raising our previous forecast by three percentage points and now expect real production growth of 7% for 2021.”

Market reaction

EUR/USD holds the lower ground below 1.1900 amid broad-based US dollar comeback, as safe-haven flows favor the greenback amid Europe’s struggle with surging covid cases.

The spot was last seen trading at 1.1877, down 0.15% on the day.

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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