In the third quarter of 2022, households’ financial assets shrank for the third time in a row owing to persistent valuation losses. A phase of negative growth in financial assets lasting longer than this was last seen during the global financial crisis.

Germany’s current account recorded a surplus of €16.9 billion in November 2022, up €11.2 billion on the previous month’s level. This was caused by the larger surplus in the goods account and the shift to a surplus in invisible current transactions, which comprise services as well as primary and secondary income.

The Deutsche Bundesbank calculates the basic rate of interest pursuant to the German Civil Code and publishes its current level in the Federal Gazette.

Despite the energy crisis, the Deutsche Bundesbank expects that the German economy will not experience a severe downturn in the winter. “While economic output is likely to contract initially, we expect that the economy will gradually recover from the second half of 2023 onwards,” said Bundesbank President Joachim Nagel upon the release of its latest projections. However, the energy crisis will boost inflation in Germany. “Inflation is high and will decline only gradually,” Nagel explained.

Germany’s current account recorded a surplus of €5.9 billion in October 2022, almost half of the previous month’s result.

The macro-financial environment has deteriorated substantially over the course of 2022. It has been shaped by subdued growth prospects, high inflation as well as rising interest rates and risk premia.

Germany’s current account recorded a surplus of €14.8 billion in September 2022 and was thus up again significantly on the narrow result of €0.9 billion in the previous month.

The German trading center is experiencing strong growth in foreign exchange trading and OTC interest rate derivatives. These findings were revealed by the survey of foreign exchange and derivatives market activity conducted in April 2022 and covering all major global financial centres. The survey was carried out by central banks in 52 countries in consultation with the Bank for International Settlements (BIS).

German banks adopted stricter credit standards for loans to enterprises in the third quarter of 2022.  For the second time in a row, credit standards for loans to households for house purchase have been made more restrictive than at any point in time since the introduction of the BLS. Credit standards for consumer credit and other lending were also made considerably more restrictive.