In its spring forecast released on Wednesday, Germany's IfW economic institute raised its growth forecast for 2023 from 0.3% to 0.5%.

Additional takeaways

“The German government is predicting growth of 0.2%. For 2024, the institute upgraded its growth forecast from 1.3% to 1.4%.”

"The German economy is struggling to emerge from the energy crisis.”

"The economic consequences of the war in Ukraine have stalled the recovery from the pandemic and noticeably depressed the level of gross domestic product."

“Consumer prices are set to rise by 5.4% this year, and by 2.1% in 2024.“

"High inflation is reducing households' disposable incomes and leading to a decline in private consumer spending in the current year."

Market reaction

EUR/USD is struggling to gain upside traction in the European session this Wednesday, currently trading at 1.0735, modestly flat on the day.