Economic output in Germany stagnated in the second quarter of 2022. Although the services providers which had been constrained during the pandemic received a boost, high price increases and uncertainty in connection with the war in Ukraine weighed on households and enterprises, according to the Bundesbank’s latest Monthly Report. In addition, the unfavourable developments on the gas market are clouding the future outlook and, according to the Bundesbank, are increasing the likelihood of a decline in gross domestic product in the fourth quarter of 2022 and the first quarter of 2023.

The German current account recorded a surplus of €18.8 billion in March 2022, down €2.3 billion on the previous month’s level.

Professor Dr. Axel A. Weber, President of the Deutsche Bundesbank, Speech at the Norges Bank Conference on Monetary Policy

Cash continues to be the most frequently used means of payment in Germany, although cashless payments are increasing their share. These are the findings of the Bundesbank’s sixth study on payment behaviour in Germany for 2021. Respondents used banknotes and coins to make a total of 58% of their payments for purchases of goods and services, compared with 74% in the Bundesbank’s last major study from 2017. The lower use of cash was mainly due to the increase in online purchases during the coronavirus pandemic.

The German current account recorded a surplus of €20.8 billion in February 2022, up €8.4 billion on the previous month’s level. This was mainly attributable to an increase in the goods account surplus. Conversely, the surplus in invisible current transactions, which comprise services as well as primary and secondary income, contracted slightly.