In spite of many burdens, the German economy grew more strongly than expected at the beginning of 2026 – partly because industry proved to be quite resilient. However, the labour market continued to deteriorate and the consequences of the war in Iran are clouding the outlook for the German economy in the second quarter.

The nominal effective exchange rates of the euro condense bilateral exchange rates against multiple countries into a single index. As an aggregate, they capture changes in euro exchange rates against various groups of currencies of key trading partners.

Germany’s current account recorded a surplus of €23.6 billion in March 2026. This was €3.1 billion up on the previous month’s level. The goods account surplus decreased, but the surplus in invisible current transactions, which comprise services as well as primary and secondary income, increased more strongly.

In an interview with the Slovenian newspaper Delo, Bundesbank President Joachim Nagel expresses optimism about Germany's economic future and discusses current monetary policy challenges and the digital euro.

The war in Iran and the blockade of the Strait of Hormuz have shaken global energy markets and evoked memories of 2022, when Russia’s attack on Ukraine significantly exacerbated the energy crisis of 2021/22. In the current issue of the Monthly Report, Bundesbank experts examine both crises and show that while there are parallels there are also significant differences.