Siegfried Russwurm, President of Germany's BDI industry association, said on Tuesday that the economy is expected to see a slight contraction this year.

Key takeaways

“The German economy is expected to contract by 0.3% this year.”

“Mild recessionary tendencies will predominate at the start of the year, see an upward trend from spring.”

“See real 1% increase in german exports of goods and services in 2023, lagging behind global trade which is expected to grow by around 1.5%.”

Market reaction

EUR/USD continues to move back and forth in a defined range between 1.0810 and 1.0840 so far this Tuesday, awaiting Germany’s ZEW survey for fresh impetus.