One of the German government's economic advisers, Volker Wieland, warned on Wednesday, the risk of a recession in Germany is substantial.
“A major lesson from the coronavirus and Russia crises was that Germany's economy needs diversification – not just for energy, but also in the country's industry supply chains as the sector relies heavily on upstream products from abroad,” he added.
His comments come after the German government's council of economic advisers on Wednesday cut the country’s GDP forecast by more than half for this year, citing economic uncertainty due to Russia's invasion of Ukraine.
Market reaction
EUR/USD was last seen trading at 1.1153, adding 0.61% on the day. The bulls remain relentless amid surging euro area bond yields and broad US dollar weakness. German inflation remains in sight.
