Germany’s economy ministry now sees contracting economy in 2024

The picture continues to dim in Germany and the economy ministry is out with lower forecasts, something that was hinted at earlier this week.

• GDP seen -0.2% in 2024 vs +0.3% prior
• Expects +1.1% in 2025 vs +1.0% prior
• Sees 1.6% growth in 2026
• Sees 2024 inflation at 2.2% vs 2.4% prior
• Sees 2.0% inflation in 2025 and 1.9% in 2026
• Exports expected to contract 0.1% after falling 0.3% last year

Those aren’t the kind of numbers that call for holding rates at high levels.

This article was written by Adam Button at www.forexlive.com.