You Can Read Between the Lines that Bundesbank is Worried - Forex News by FX Leaders

You Can Read Between the Lines that Bundesbank is Worried

Posted Monday, February 17, 2020 by
Skerdian Meta • 1 min read

The Bundesbank released its forecasts for the German economy earlier today. The headline comments seems optimistic, but the other comments further below show that they are worried about the coronavirus and the impact it might have on the German economy. Below is the report:

  • Bundesbank says that it sees no fundamental change in the German economy for Q1
  • Exporters likely to suffer from coronavirus outbreak in China
  • The virus impact threatens to disrupt global supply chains
  • It poses a ‘cyclical downside risk’ for Germany
  • A temporary decline in overall Chinese demand could dampen German export activity

It is a bit of an interesting assessment as they continue to negate and brush aside the potential implications that the virus outbreak could have for now. They do suggest that exports will likely suffer as the impact of the virus might threaten the global supply chains.

If exporters suffer in Germany, the whole economy suffers, as we have seen in the last two years. We all know this virus will have a negative economic impact worldwide, so Germany will also be affected negatively. Now is the worst time economically for this virus to hit, but it didn’t really ask anyone, so we will have to deal with it.
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