German Government Cuts Growth Forecast to 1.2%

October 14, 2014 Share Print 0

The German government has sharply cut its economic growth forecast for this year and next, citing “external” factors for the revision.

It now expects growth this year to be 1.2%, down from its previous estimate of 1.8%. Next year, it expects the economy to grow by 1.3%, down from 2%.

A slowdown in the eurozone economy has hit German exports in recent months.

Economy Minister Sigmar Gabriel said there was no reason for the government to change its economic policies.

The German economy – Europe’s largest – contracted by 0.2% between April and June this year, while figures released last week showed that exports fell by 5.8% in August, the largest monthly drop in five years.

These followed weak industrial output figures and recent surveys showing a fall in business confidence.

via BBC

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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.