Bundesbank says German economic output decreased in Q1 2021

Author: Justin Low | Category: Central Banks

Bundesbank remarks in its monthly report on the German economy

  • Prolonged lockdown, VAT increase contributed to weaker private consumption
  • Only parts of the economy are not directly affected by tighter restrictions
  • Those parts i.e. construction, production maintained a robust underlying trend
  • Manufacturing industry does not have a renewed demand problem
  • The industry's recovery will continue
  • Higher inflation can be expected from 2H 2021 due to base effects
  • They could very well exceed 3% by the end of the year
All in all, nothing that really stands out all too much from the Bundesbank. The remarks are pretty much in-line with the market's current train of thought already.Invest in yourself. See our forex education hub.

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