The Bundesbank sees the German economy as still being on a sound growth path. For 2017, it has, in fact, raised its earlier projection. According to Bundesbank President Weidmann, the cyclical tailwind is being sustained chiefly by the favourable labour market situation and substantial increases in households' real disposable income.

The German economy is currently following a growth path that is primarily underpinned by domestic demand. Commenting on the Bundesbank's latest semi-annual projection, the Bank's President Jens Weidmann said: "The main drivers are the favourable labour market situation and substantial increases in households' real disposable income, though foreign trade is currently being hampered by frail demand from the emerging market economies." This is making itself felt on industrial investment, the Bundesbank's economists write.

Bundesbank President Jens Weidmann has called on central banks to keep the objective of price stability firmly in their sights. Speaking at an event held in honour of former Bundesbank President Karl-Otto Pöhl, he also warned that diminishing the independence of central banks could reduce welfare for society as a whole.