German Government Cuts Growth Forecast to 1.7%

The German government on Wednesday trimmed its economic growth forecast for this year to 1.7 percent amid concerns over weakening growth abroad and global political tensions.

The figure given by the Economy Ministry was only slightly below the 1.8 percent growth it forecast in October. According to preliminary figures released this month, Europe’s biggest economy expanded by 1.7 percent last year.

The ministry predicted that the unemployment rate will average 6.4 percent this year, the same as in 2015.

Earlier Wednesday, a separate survey showed that German consumer confidence remains stable despite concerns about the massive influx of migrants and recent terrorist attacks in Paris.

The GfK research group said its forward-looking consumer climate index for February was unchanged at 9.4 points. It said consumers’ willingness to buy and economic expectations rose slightly, while their income expectations dropped.

via Mainichi

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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