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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.