BDI slashes Germany’s 2022 GDP forecast, warns of recession
FXStreet · 21 Jun 2022 175 Views

Germany's BDI warned of an inevitable recession in Europe’s largest economy, in the face of a halt in Russian gas deliveries.

Additional takeaways

The industry association slashed its economic forecast for 2022 on Tuesday.

German GDP is now expected to grow by 1.5% vs. the 3.5% previous forecast given before war broke out in Ukraine.

A return to pre-crisis levels is not expected before the end of the year at the soonest.

Market reaction

EUR/USD is catching a fresh bid above 1.0500 in the last minutes, shrugging off the dire German economic outlook. The pair is adding 0.20% on the day to trade at 1.0527, as of writing.