While presenting its economic projections on Wednesday, Germany’s influential IFO Institute warned that the German recession will be sharper than expected.

Key takeaways

"The German economy is only very slowly working its way out of the recession."

“German GDP expected to grow by 1.5% in 2024, down from 1.7% previously forecast.”

“German economy expected to contract by 0.4% this year vs. 0.1% drop previously forecast.”

“Germany's inflation seen at 5.8% in 2023, 2.1% in 2024.”

“German unemployment rate expected to remain steady at 5.3% this year, before rising to 5.5% in 2024.”

Market reaction

EUR/USD is unperturbed by the above findings, trading better bid at 1.0920, as of writing.