In his speech at the German Institute for Economic Research (DIW Berlin), Bundesbank President Joachim Nagel highlighted the importance of the European single market. He said that it was truly a source of prosperity and could help to more effectively overcome future challenges. He called for greater efforts to deepen the integration of the single market, particularly in the areas of services, digitalisation, and the capital market. Furthermore, he stressed that credible fiscal rules were essential for monetary union.

German economic output rose unexpectedly in the third quarter of 2024, according to the Monthly Report. However, none of the key demand components currently give any cause to expect a marked recovery in the short term. “The industrial sector is faced with a difficult environment and is under high pressure to adapt,” the economists write. In addition, the labour market is becoming increasingly gloomy owing to the protracted bout of economic weakness.

Germany’s current account recorded a surplus of €14.8 billion in September 2022 and was thus up again significantly on the narrow result of €0.9 billion in the previous month.

Bundesbank President Jens Weidmann warned that a full-blown trade war between the US and the EU could cost both sides dearly. "The adverse effects might be considerable larger than in case of the trade spat with China“, he said in a speech in New York.

Germany’s current account recorded a surplus of €16.0 billion in July 2024, down €4.6 billion on the previous month’s level. This was attributable to a lower goods account surplus and a higher deficit in invisible current transactions, which comprise services as well as primary and secondary income.