Economic activity stagnated in the final months of 2019
German economic activity remained weak in the final quarter of 2019. Industry was the main factor weighing on aggregate output towards the end of the year, the Bundesbank’s economists write in the most recent edition of their Monthly Report. House price inflation in Germany lessened last year.
Vice-President Claudia M. Buch points out that an unexpected economic downturn could be amplified if the banking sector deleverages to maintain capital ratios. Hence, “banks must maintain capital buffers designed to absorb losses and thereby stabilizing lending”, Buch stated at an event in Dublin.