Contrary to expectations, German economic activity expanded in the third quarter of 2022, the Bundesbank writes in its current Monthly Report. Despite high inflation and uncertainty about future energy supply, real gross domestic product surpassed its pre-pandemic level for the first time. However, the Bundesbank’s experts believe that downward forces are likely to clearly predominate in the coming months. They still expect the German economy to enter a recession in the final quarter of 2022 and the first quarter of 2023, though the scale of the recession is extremely uncertain. “Double-digit inflation could even persist into the new year,” the report states.

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.

At the end of the first quarter of 2022, German households’ financial assets amounted to €7,558 billion. This was €36 billion lower than in the previous quarter. Households‘ financial situation thus fall for the first time in two years.