Germany’s DIHK lowers 2022 GDP forecast, sees inflation at 7%.
Germany’s Chambers of Industry and Commerce (DIHK) on Tuesday lowered the country’s 2022 GDP growth forecast to 1.5% vs. 3% in the February estimate.
Key quotes
“Germany's 2022 inflation rate will more than double from last year's 3.1% as already high energy and food prices are pushed up by the war in Ukraine.”
“Now expects the inflation rate to hit 7%, after initially forecasting a rise of 3.5% in its February forecast.”
“DIHK survey of 25,000 companies shows 39% of all firms want to pass cost increases on to customers.”
Market reaction
EUR/USD is keeping its range above 1.0700, up 0.17% on the day, as investors assess the latest ECB commentary and mixed German and Eurozone PMIs.
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.
