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Germany Cuts Growth Forecast

The lagging effect of the european crisis has finally caught up with Germany. The economy ministry has reduced the growth expectations from 1.6 percent to 1 percent.

Two years after expanding at its fastest rate since reunification, Germany’s economic growth is seen at just 1 percent next year, finally hit by the euro zone crisis that has hammered most of its partners.

The government chopped its 2013 growth forecast on Wednesday to 1 percent, down from a 1.6 percent forecast in April.

For this year, the economy ministry expects growth of 0.8 percent, up from 0.7 percent in April.

Germany’s economy powered through the first two years of the euro zone’s sovereign debt crisis, posting 4.2 percent growth in 2010 and 3 percent last year at a time when some peers were seeking bailouts and others were grinding to a halt.

Its export strength saved the currency bloc from falling into recession up until the second half of this year.

via CNBC [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
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