Germany's economy is on a sound upward path, as indicated by the Deutsche Bundesbank's semi-annual economic projection. Domestic demand is the chief driver of the current upswing.

2011 saw a continuation of the trend towards building up multinational groups by way of holding companies.

Bundesbank President Jens Weidmann has warned against government intervention in the market economy becoming the norm after the coronavirus pandemic,  although it was important for the government to intervene strongly in the crisis. “But this must not become a normal state of affairs. I do not believe that governments know best when it comes to running a business,” he said in an interview with the “Augsburger Allgemeine” newspaper.

Prof. Dr. Axel A. Weber, President of the Deutsche Bundesbank, Luncheon Speech at the American Council on Germany

The emerging market economies have grown significantly over the past 20 years, increasingly becoming the engine fuelling global growth. Recently, however, economic momentum in China, Russia and other countries has tailed off considerably. In the July Monthly Report, the Bundesbank's economists look into the drivers behind this development.

The German economy has picked up momentum. Aggregate output is expanding at a faster pace again after an interruption due to the escalation of the sovereign debt crisis in the euro area. The driving forces are changing, however. While external impulses had the upper hand following the economic and financial crisis, domestic economic activity has come to fore recently.

In its latest Monthly Report, the Bundesbank presents a detailed outlook for the German economy in 2015 and 2016, which was already published at the beginning of June. Additional focus lies on new instruments for measuring inflation expectations as well as on marketable financial instruments of banks and their role as collateral in the Eurosystem.