Despite the massive shock triggered by the coronavirus pandemic and what were, at times, very stringent containment measures, the number of corporate insolvencies dropped substantially in 2020, the Bundesbank writes in its Monthly Report. This was due in part to the temporary suspension of the obligation to file for insolvency, which is subject to certain conditions. German enterprises’ sales fell far less significantly than they had done during the financial and economic crisis of 2009, the Bank’s economists explain.

Bundesbank President Joachim Nagel has warned of persistently high inflation. “Even before the war against Ukraine, the inflation rate was very high. [...] Given the surge in energy prices on account of the war, consumer price inflation is likely to pick up again substantially, particularly in the near term,” Mr Nagel said in a speech delivered at a change of office ceremony in Hanover. As members of the ECB Governing Council, he remarked, we must now ensure that the strong inflation does not become entrenched and does not lead to excessively high inflation in the medium term.

Germany’s current account recorded a surplus of €15.4 billion in October 2021, down €4.6 billion on the previous month’s level.