The picture continues to dim in Germany and the economy ministry is out with lower forecasts, something that was hinted at earlier this week.
- GDP seen -0.2% in 2024 vs +0.3% prior
- Expects +1.1% in 2025 vs +1.0% prior
- Sees 1.6% growth in 2026
- Sees 2024 inflation at 2.2% vs 2.4% prior
- Sees 2.0% inflation in 2025 and 1.9% in 2026
- Exports expected to contract 0.1% after falling 0.3% last year
Those aren't the kind of numbers that call for holding rates at high levels.
