German economic output is likely to have stagnated in the third quarter of 2026, the Bundesbank writes in its current Monthly Report. The economists attribute this interruption of the upward trend to temporary stress factors, however. These include the low water levels on the Rhine, the loss of competitiveness in the context of the Iran war and one-off effects related to the fuel rebate. In addition, high energy prices weighed on households’ purchasing power. The inflation rate rose significantly in September to its highest level since the end of 2023. The economists expect inflation to remain elevated for the time being.

The water level of the Rhine has shown that global warming is already having tangible economic effects in Germany. That is why the Deutsche Bundesbank has been examining the financial risks arising from climate change for several years, says Bundesbank First Deputy Governor Sabine Mauderer. Against this background Bundesbank has published a climate roadmap through the end of 2027. The roadmap brings together the Bundesbank’s strategic objectives and planned work on climate- and nature-related risks.

The economic situation in Germany is better than in the public perception, said Bundesbank First Deputy Governor Sabine Mauderer at the Bundesbank’s 4th Financial Centre Conference, speaking in front of around 400 guests. She warned, however, that Germany and Europe need to keep an eye on current challenges. Bundesbank President Joachim Nagel spoke out in favour of greater strategic sovereignty and progress in European integration. 

Stability needs innovation, Bundesbank President Joachim Nagel said at an event marking the five-year anniversary of the Bundesbank’s innovation lab, InnoWerk, in Frankfurt. To celebrate, InnoWerk invited experts on innovation from within the financial sector to network and discuss developments.