Germany’s BDI lowers 2021 GDP forecast to 3.0% from 3.5%

Germany’s Bundesverband der Deutschen Industrie (BDI), a powerful industry association, slashes the economic growth forecasts for this year to 3% from 3.5% due to ongoing lockdown measures in Europe's biggest economy.

Additional quotes

“The industry association sees industrial production growth of 8% in 2021.”

“The association raises forecast for export growth to 8.5% from previous forecast of 6%.”

Separately, Germany’s VDMA President Karl Haeusgen said, "we are raising our previous forecast by three percentage points and now expect real production growth of 7% for 2021.”

Market reaction

EUR/USD holds the lower ground below 1.1900 amid broad-based US dollar comeback, as safe-haven flows favor the greenback amid Europe’s struggle with surging covid cases.

The spot was last seen trading at 1.1877, down 0.15% on the day.