Germany’s Economy Minister Peter Altmaier said on Tuesday, his government will cut the 2021 GDP forecast to 2.6% from 3.5% previously estimated in April, Reuters reports, citing two sources.
Meanwhile, he said to lift the 2022 GDP forecast to 4.1% vs. 3.6% predicted in April, the sources added.
The sources said that the German government expects inflation to jump to 2.9% in 2021 and ease to 2.2% in 2022, 1.7% in 2023.
Altmaier, however, declined to comment on the GDP forecasts.
On Monday, the German central bank, the Bundesbank, highlighted that the 2021 GDP outlook is likely to be significantly below the June forecast of 3.7% due to a slowdown in activity in Q4.
EUR/USD struggles with 1.1600
EUR/USD is unfazed by the above comments, defending minor bids at 1.1609, as of writing.
