The German economy is under considerable pressure to adapt, writes the Bundesbank in its September Monthly Report. Challenges are arising mainly from demographic change and the transition to a low-emission energy supply. Moreover, dependency on China for the procurement of key intermediate inputs entails risk. In the midset of the current debate concerning Germany’s alleged status as the “sick man of Europe”, the Bundesbank still sees the German economy as well positioned. According to our analyses, broad-based deindustrialisation is not on the table either, says Marcus Jüppner, co-author of the report. 

The German current account recorded a surplus of €29.8 billion in February 2024, up €1.8 billion on the previous month’s level. Although the surplus in invisible current transactions, which comprise services as well as primary and secondary income, declined, the surplus in the goods account grew by an even wider margin.