The International Monetary Fund (IMF) announced on Wednesday 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 fund said in a statement, per Reuters. "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.

Market reaction

This report doesn't seem to be having a noticeable impact on the shared currency's performance against its rivals. As of writing, the EUR/USD pair was posting small daily losses at 1.0218.