Germany’s Ifo: German economy to contract by 0.3% in 2023

Germany’s Ifo Institute announced on Monday that it revised its 2023 growth forecast to -0.3% from 3.5% in June. The institute further noted that the annual inflation expectation for 2023 was revised to 9.3% from June’s forecast of 6%.

For 2022, Ifo now sees the economy growing by 1.6%, down from 2.5% in June, and forecasts 8.1% inflation (6.8% in June), as reported by Reuters.

EUR/USD advances for the second session in a row and flirts with the 1.0200 neighbourhood in response to the intense sell-off in the greenback, which forces the US Dollar Index (DXY) to break below the 108.00 support and record new multi-week lows.