The Bundesbank expects economic output in Germany to decline again in the first quarter of 2023. Although output in industry and construction expanded significantly again in January, exports of goods recovered only partially in price-adjusted terms. In addition, consumer-related sectors continue to suffer from the persistently high level of inflation. Core inflation once again matched the all-time high of December 2022. Despite the current weak economy, the outlook for the labour market remains positive.

Is digitalisation increasing aggregate labour productivity? And if so, to what extent? The Bundesbank’s experts explore these questions in the current issue of the Monthly Report by studying developments in the four largest euro area countries and the United States between 1997 and 2018. They find that productivity effects emanating from the digital sectors are very strong, with input-output linkages between economic sectors playing an important role. 

2022 saw Germany’s current account surplus drop by €116 billion to €162 billion. In relation to nominal gross domestic product (GDP), it fell by 3½ percentage points to 4¼%. This represents the largest decline since German reunification and the lowest figure since 2003. 

Professor Joachim Wuermeling has notified the Executive Board that he wishes to take up a new position in 2024 and will therefore be leaving the Bundesbank at the end of the year, some months before the end of his term of office. Against this background, and alongside further organisational adjustments, the Executive Board of the Bundesbank has adopted a reallocation of responsibilities that will come into effect on 1 April 2023.