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German Economy Ministry: Economy expected to avert recession


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According to an Economy Ministry report published on Friday, the German economy is seen narrowly skirting a recession in the first quarter of the year.

Key takeaways

“A technical recession of two negative quarters in a row appears to have been averted.”

“Current forecasts also predict a slight year-on-year increase in gross domestic product (GDP) for 2023 as a whole.”

Market reaction

Despite upbeat remarks, EUR/USD is unable to capitalize, as it is consolidating its rally to fresh 13-month highs of 1.1076. The pair is trading at 1.1061, up 0.16% on the day.