German finance ministry sees subdued economic activity over winter

Germany’s finance ministry expects activity in Europe’s biggest economy to remain subdued during the fourth quarter of this year and first quarter of next and sees declining inflation rates during 2023, it said in its monthly report per Reuters.

Key quotes

Overall, economic developments are expected to remain subdued in the winter half (year).

However, relatively stable labour market developments and the government’s relief measures … are providing supportive impetus.

Current estimates pointed to declining inflation rates, albeit at a raised level, next year.

Tax revenues rose 2% in November from the same month last year to 55.95 billion Euros.

In the first 11 months of the year, the tax take increased by 8.7%.

EUR/USD stays intact

EUR/USD remains unchanged around 1.0600, paying little heed to the news, as traders await the US GDP data for fresh impulse amid the year-end holiday mood.

Also read: Forex Today: Little action across the FX board