German Government to Cut Growth Forecast to 1.25%

The German government will cut its economic growth forecasts for 2014 and 2015 next week, according to two sources in the ruling coalition, one of whom said the growth outlook for both years would be cut to about 1.25 percent.

“This is the approximate number,” said one of the sources. The second source said there would be a “sharp cut” in the twice-yearly official projection, last made in April, of 1.8 percent growth for this year and 2.0 percent for next year.

Germany had a strong start to the year but a downward revision looked inevitable after a 0.2 percent contraction in the second quarter and a slew of weak data, including a slump in exports, pointing to third-quarter stagnation.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza