Finance Ministry: Germany’s economic outlook looks gloomy

The economic outlook for Europe’s largest economy looks gloomy due to soaring energy prices and supply chain disruptions according the Finance Ministry’s August monthly report, published early Friday.

Given the early Asian session’s inaction, EUR/USD fails to react to the news and was last seen around the one-month low flashed the previous day, at 1.0900 by the press time.

Key Statements

The significantly lower gas supplies from Russia, the persistently high price increases for energy and, increasingly, other goods, as well as the longer-than-expected supply chain disruptions, also in connection with China’s zero-COVID policy, are weighing heavily on the economy’s development.

The government will present updated economic projections on Oct. 12. The outlook for the further development (of the economy) is currently noticeably gloomy, marked by ‘a high degree of uncertainty’.