German Economy Ministry: 2021 GDP forecast lowered to 2.6% from 3.5% in April

Germany's economy ministry announced on Wednesday that they have lowered the 2021 growth forecast to 2.6% from 3.5% reported in April, per Reuters.

Additional takeaways

"Raised 2022 GDP forecast to +4.1% from April forecast of +3.6%."

"Expecting GDP growth of +1.6% in 2023."

"Expecting inflation to jump to 3% in 2021 and ease to 2.2% in 2022, 1.7% in 2023."

Market reaction

The common currency remains on the back foot following this report. As of writing, the EUR/USD pair was trading at 1.1590, losing 0.05% on a daily basis.