The German economy has picked up momentum. Aggregate output is expanding at a faster pace again after an interruption due to the escalation of the sovereign debt crisis in the euro area. The driving forces are changing, however. While external impulses had the upper hand following the economic and financial crisis, domestic economic activity has come to fore recently.

In a speech on 5 April 2016 Christine Lagarde called for a "three-pronged approach" to secure durable growth, with coordinated efforts in the areas of structural reforms as well as in fiscal and monetary policy.