German export market shares have been contracting since 2017, and especially since 2021. According to the latest Monthly Report, this is largely due to a deterioration in the competitiveness of the German economy. More than three-quarters of the losses in market shares between 2021 and 2023 were the result of supply-side constraints. In this issue, the authors look at what is behind the decline in German export market shares and derive possible structural reforms.

Die Bruttoemissionen am deutschen Rentenmarkt lagen im Mai 2025 mit 135,6 Mrd € über dem Wert des Vormonats (115,8 Mrd €). Nach Abzug der Tilgungen und unter Berücksichtigung der Eigenbestandsveränderungen der Emittenten stieg der Umlauf heimischer Rentenwerte um 35,7 Mrd €. Ausländische Schuldverschreibungen wurden für netto 23,1 Mrd € auf dem deutschen Markt untergebracht. Im Ergebnis nahm damit der Umlauf von Schuldverschreibungen in Deutschland um 58,8 Mrd € zu.

Germany’s current account recorded a surplus of €9.6 billion in May 2025, virtually half the level seen in the preceding month. This was mainly attributable to the swing to a deficit in invisible current transactions, which comprise services as well as primary and secondary income. There was also a somewhat smaller surplus in goods trading. 

Monetary policy must be reliable, but policymakers must not overly restrict its flexibility, Bundesbank President Joachim Nagel said at the 10th Bundesbank IAW Lecture in Tübingen. In his speech, Nagel addressed the ECB’s original monetary policy strategy, which has undergone significant reviews. 

As part of the Bundesbank Invited Speakers Series (BISS), Hiroshi Nakaso, Chairman of the Daiwa Institute of Research and former Deputy Governor of the Bank of Japan, delivered a keynote speech at the Bundesbank’s Regional Office in Hesse. Under the title “Germany and Japan 2.0 – Addressing Common Challenges at a Global Inflection Point”, the event brought together perspectives on economic developments in two of the world’s largest industrial economies.