Bundesbank: China economic crisis would cut German GDP growth by 0.7%

Eren Sengezer FXStreet

An economic crisis in China would cut the German Gross Domestic Product (GDP) growth by 0.7% in the first year and by almost 1% in the second year, Germany's Bundesbank said on Wednesday, as reported by Reuters.

Bundesbank noted that an abrupt decoupling from China would not be realistic or desirable, adding that even an orderly withdrawal would bring considerable losses.

Market reaction

EUR/USD largely ignored these comments and was last seen trading near 1.0900, where it was up 0.45% on a daily basis.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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