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.

The financial assets of households in Germany stood at €5,875 billion at the end of the first quarter of 2018. Compared with the fourth quarter of 2017, this represents just a moderate increase of €14 billion, or 0.2%. In the first quarter, claims on insurance corporations grew in particular (€22 billion), followed by currency and deposits, which saw inflows totalling just under €15 billion.

Bundesbank President Jens Weidmann has rebuffed demands by the International Monetary Fund for Germany to use fiscal policy space for growth-stimulating measures. A more accommodative German fiscal policy would not relieve the perceived drag on the global economy, he said at a press conference following the IMF-World Bank Annual Meetings.

The German economy grew strongly in the past year. Driven by strong consumption growth, real gross domestic product (GDP), according to initial calculations by the Federal Statistical Office, was up by 1.7% from 2014.

In the current issue of its Monthly Report, the Bundesbank uses scenario calculations to analyse the potential macroeconomic impact of a further escalation of the war against Ukraine. According to the experts, German real GDP this year could be down by as much as 2% compared with 2021. The inflation rate in Germany in 2022 could be 1½ percentage points higher than expected in the European Central Bank’s March projection.

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

Speaking in Frankfurt, Bundesbank President Jens Weidmann underscored the importance of the G20 for international free trade and for progress in financial market regulation. In times like these, international cooperation is particularly important, he said, which is why the G20 is a "precious treasure".