Despite the massive shock triggered by the coronavirus pandemic and what were, at times, very stringent containment measures, the number of corporate insolvencies dropped substantially in 2020, the Bundesbank writes in its Monthly Report. This was due in part to the temporary suspension of the obligation to file for insolvency, which is subject to certain conditions. German enterprises’ sales fell far less significantly than they had done during the financial and economic crisis of 2009, the Bank’s economists explain.

Germany’s current account recorded a surplus of €15.4 billion in October 2021, down €4.6 billion on the previous month’s level.

Jens Weidmann paid tribute to the achievements of Hans-Werner Sinn, the long-serving President of the ifo Institute. Mr Weidmann told the audience at a symposium held to mark Professor Sinn's retirement from office as President of the ifo Institute that he had played a major part in shaping the economic and political debate of the past few decades.

In the current issue of its Monthly Report, the Bundesbank uses scenario calculations to analyse the potential macroeconomic impact of a further escalation of the war against Ukraine. According to the experts, German real GDP this year could be down by as much as 2% compared with 2021. The inflation rate in Germany in 2022 could be 1½ percentage points higher than expected in the European Central Bank’s March projection.

German banks tightened their credit standards for loans to enterprises marginally in the second quarter 2022. In the case of loans to households for house purchase, the tightening of credit standards was stronger than at any other time since the introduction of the BLS. Credit standards for consumer credit and other lending were also tightened.

At the end of 2017, German households’ financial assets amounted to €5,857 billion, up by €78 billion, or 1.4%, on the third quarter of the year.

Germany’s current account recorded a surplus of €19.6 billion in September 2021, up €4.2 billion on the previous month’s level.