Germany, the largest economy in the euro-zone, will publish its preliminary Gross Domestic Product report for Q4 at 7:00 GMT today. The data is expected to show that the economy expanded at an annualized rate of 0.8 percent, following a 1.1 percent expansion in the third quarter. Germany flirting with recession That German economy could be staring at recession is easily explained by the fact that it is heavily dependent on the global demand conditions. Germany’s exports of goods and services make up more than 50 percent of its GDP and more importantly, the likes of IMF have recently warned about a deeper global slowdown in 2019. Further, the IFO has calculated that German GDP could be permanently lower by 0.2 to 0.5% in the long-run, with larger negative effects in the short-term, according to BBC. As a result, German recession fears seem to have gripped markets. This is evident from the recent drop in the German bond yields (10-year below 0.10 percent). A weaker-than-expected preliminary Q4 GDP reading would bolster these fears, sending the EUR to levels below the January low of 1.1215. On the other hand, a better-than-expected reading could alleviate concerns of a slowdown in the Eurozone’s largest economy, allowing for a minor corrective bounce in EUR/USD. The pair is currently trading at 1.1278, having clocked a low of 1.1249 earlier today. The news that Trump is considering a 60-day extension of China tariff deadline could keep risk assets better bid and cushion the impact of (potential) below-forecast German GDP reading. About German Preliminary GDP The Gross Domestic Product released by the Statistisches Bundesamt Deutschland is a measure of the total value of all goods and services produced by Germany. The GDP is considered as a broad measure of the German economic activity and health. A high reading or a better than expected number has a positive effect on the EUR, while a falling trend is seen as negative (or bearish). FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Global slowdown continues into early 2019 – NAB FX Street 3 years Germany, the largest economy in the euro-zone, will publish its preliminary Gross Domestic Product report for Q4 at 7:00 GMT today. The data is expected to show that the economy expanded at an annualized rate of 0.8 percent, following a 1.1 percent expansion in the third quarter. Germany flirting with recession That German economy could be staring at recession is easily explained by the fact that it is heavily dependent on the global demand conditions. Germany's exports of goods and services make up more than 50 percent of its GDP and more importantly, the likes of IMF… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
