Households’ real investment return recovered somewhat at the beginning of 2019, improving to a now only marginally negative rate of -0.1%. Viewed in isolation, historically low interest rates continued to depress income, but price gains in securities markets helped increase performance somewhat overall.

Despite the setback in the third quarter of 2018, the German economy should continue to see solid growth for the time being, in the Bundesbank’s estimation. The Bank’s recently published autumn forecast primarily attributes the slight decline in economic output in the previous quarter to temporary difficulties in the automotive industry and believes it will be overcome rapidly.

This year saw the Carl Menger Prize for Economics awarded to economist Silvana Tenreyro. Achim Wambach presented her with the award, which comes with prize money of €20,000, at the annual meeting of the German Economic Association in Freiburg.