The German economy recovered slightly in the first quarter of 2022. However, the effects of Russia’s war on Ukraine have been weighing considerably on the economy since the start of the conflict, according to the Bundesbank’s Monthly Report. Supply bottlenecks in industry and construction intensified again, for example, while high energy prices dampened output and reduced household purchasing power. At most, the Bundesbank expects economic output to grow slightly this spring.

18-19 June 2026 | Eltville am Rhein

Die Summe der Aktiva der Kreditinstitute mit Sitz in der EU erhöhte sich von 29,44 Billionen € im Dezember 2020 auf 30,44 Billionen € im Dezember 2021.

The Bundesbank notes in its current Monthly Report that inflation pushes up the tax burden on real incomes. While government regularly adjusts the income tax scale, meaning that this effect – known as bracket creep – has been more or less offset in the past, the procedure used at present involves a time lag and is prone to estimation errors. The Bundesbank therefore recommends switching to a more timely and targeted procedure.