German firms brace for another economic slump in next 12 months – DIHK survey

According to the DIHK business survey published on Wednesday, German companies are bracing for another economic slump in the next 12 months.

Additional takeaways

DIHK survey of more than 24,000 companies showed that they fear the worst is yet to come.

52% of firms expect business to worsen in the next 12 months.

Only about 8% expect improvement, this is the worst we have measured since the survey began in 1985.

German GDP should be +1.2% in 2022; about -3% in 2023.

Market reaction

The Euro is unfazed by the dour German economic outlook, as EUR/USD continues to benefit from the extended decline in the US dollar ahead of the Fed rate hike decision. The pair was last seen trading at 0.9900, up 0.28% on a daily basis.