German economic outlook gloomy, finance ministry says
The economic outlook for Germany, Europe's largest economy, is gloomy due to energy price rises and supply chain disruptions, the Finance Ministry said in its August monthly report, published on Friday, reported Reuters.
Key statements
The outlook for the further development (of the economy) is currently noticeably gloomy, marked by ‘a high degree of uncertainty’.
The significantly lower gas supplies from Russia, the persistently high price increases for energy and, increasingly, other goods, as well as the longer-than-expected supply chain disruptions, also in connection with China's zero-COVID policy, are weighing heavily on the economy's development.
The government will present updated economic projections on Oct. 12.
Market reaction
Given the early Asian session’s inaction, EUR/USD fails to react to the news and was last seen around the one-month low flashed the previous day, at 1.0900 by the press time.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
