Citing a survey conducted by the Federation of German Industries (BDI) and the Association of German Chambers of Industry and Commerce (DIHK), Reuters reported that Germany’s firms brace for a mild recession in 2023 even though supply chain disruptions were expected to gradually ease.

BDI’s President Siegfried Russwurm said, "The last quarter of 2022 and the start of 2023 are likely to be accompanied by a decline in economic activity. However, we expect only a slight slump."

Meanwhile, DIHK President Peter Adrian noted, "Freight rates for container prices are approaching long-term normal values again, and the congestion outside international ports is slowly easing.”

"If the announced relaxations of China's zero-COVID policy are implemented, it would also be a positive signal for global supply chains," Adrian added.

Market reaction

The above comments have little to no impact on the Euro, as EUR/USD is keeping its range at around 1.0650, still adding 0.18% on the day.