According to the German Bundesbank, the German economy may start shrinking this quarter. After the considerable growth seen last quarter, there are signs of an economic slowdown. This statement is made in the latest report published by the Bundesbank.
So far, there has been no official economic report in Q3. In Q2 2012, Germany’s GDP increased only by 0.3%. The German government previously downgraded the forecast for the economic growth in Germany in 2013. The forecast suggests that the growth will make 1% (against 1.6% stated in the previous forecast).
The reason for the GDP forecast downgrade is the eurozone crisis, economic activity slowdown and lower export to Asia.
Nevertheless, the German Minister of Finance has recently improved his forecast for the GDP growth in 2012 from 0.7% up to 0.8%.
Forex
The chart below, courtesy of , reflects the current state of affairs in the market of EURUSD. The price is still moving within the 1,3171-1,2825 price range. A break and consolidation below 1,3171 will resume the recent rally. In order to change the mid-term trend, it will have to break below 1,2888 and 1,2825.
