German government expects recession in 2023 – Reuters

The German government expects the Gross Domestic Product (GDP) to contract by 0.4% in 2023, Reuters reported on Thursday, citing a source who has knowledge of provisional figures of the government's autumn projections.

The government is also said to lower the 2022 growth forecast to 1.4% while projecting inflation at 7.9% and 8% in 2022 and 2023, respectively. 

A spokesperson for the German economy ministry noted that figures were not finalized and that they would present the latest projections next week.

Market reaction

The EUR/USD pair showed no immediate reaction to this headline and was last seen posting small daily losses at 0.9870.