Germany’s current account recorded a surplus of €27.6 billion in March 2024, down €1.1 billion on the previous month’s level. This was mainly attributable to a lower surplus in invisible current transactions, which comprise services as well as primary and secondary income.

German economic output rose unexpectedly in the third quarter of 2024, according to the Monthly Report. However, none of the key demand components currently give any cause to expect a marked recovery in the short term. “The industrial sector is faced with a difficult environment and is under high pressure to adapt,” the economists write. In addition, the labour market is becoming increasingly gloomy owing to the protracted bout of economic weakness.

At an event held in honour of former Bundesbank President Karl Otto Pöhl, incumbent President Joachim Nagel spoke about strengthening the foundation of the euro so that stable prices can be ensured even in turbulent times. He emphasised the importance of sound public finances, integrated markets and public confidence in central banks.

According to the current issue of the Bundesbank’s Monthly Report, real gross domestic product (GDP) is likely to have contracted again somewhat in the third quarter of 2024. Output in the industrial sector and in construction is expected to have declined markedly. Despite favourable conditions, private consumption probably likewise provided only little impetus.

Once a year, the Bundesbank invites guests from the spheres of politics, academia and society to the Capital City Reception in Berlin to exchange views on the economic situation and current topics. This year's event saw Bundesbank President Joachim Nagel welcome IMF Managing Director Kristalina Georgieva and author Constanze Stelzenmüller as special guests.