Bundesbank: China economic crisis would cut German GDP growth by 0.7%

An economic crisis in China would cut the German Gross Domestic Product (GDP) growth by 0.7% in the first year and by almost 1% in the second year, Germany's Bundesbank said in its monthly report on Wednesday, per Reuters.

Bundesbank noted that an abrupt decoupling from China would not be realistic or desirable, adding that even an orderly withdrawal would bring considerable losses.

Market reaction

EUR/USD largely ignored these comments and was last seen trading near 1.0900, where it was up 0.45% on a daily basis.