IMF lowers German growth forecast to 1.2% for 2022, 0.8% for 2023

The International Monetary Fund announced that it lowered its growth forecasts for Germany to 1.2% for 2002 and to 0.8% for 2023. In its previous forecast, the IMF was expecting the German economy to grow by 2% in both years.

“Uncertainty is very high, with risks to the baseline growth forecast skewed downward and risks to the inflation forecast skewed upward,” the IMF said on Wednesday adding that “the greatest threat is a persistent shut-off of the remaining Russian gas exports to Europe.”

The IMF also revised its 2022 inflation forecast for Germany to 7.7% from 6.5% previously. This news report doesn’t seem to have an immediate impact on the Euro’s performance against its rival currencies. The EUR/USD pair was posting small daily losses at 1.0218.