“Economic output in Germany is likely to have increased slightly in the first quarter of 2025, but could suffer a setback in the second quarter,” the Bundesbank writes in its latest Monthly Report. Construction and industrial output, for instance, were up recently. Retail sales also continued to grow in January and February. However, according to the Bundesbank’s economists, the outlook for the second quarter is gloomy, not least given the US administration’s tariff policy.

Between 2021 and 2023, the average amount of wealth per household in Germany grew slightly in nominal terms, but declined in real terms, i.e. when adjusted for inflation. This is the finding of a Bundesbank study that regularly examines household wealth and finances. Nevertheless, net wealth remains at a higher level in both nominal and real terms than in 2017, when the Bundesbank carried out its last survey before the COVID-19 pandemic.

Households’ expectations for inflation often deviate from the officially recorded inflation rates. As part of the Bundesbank Invited Speakers Series, Michael Weber, Associate Professor of Finance at the University of Chicago Booth School of Business, expressed his view that the public’s perceptions are chiefly shaped by their shopping experiences or their family and friends rather than by classic media. He went on to discuss with Bundesbank President Joachim Nagel what this means for central bank communication and monetary policy. The panel was moderated by Falko Fecht, Head of the Bundesbank’s Research Centre.

“The better society is informed about financial topics, the better we, as central banks, can explain our monetary policy decisions,” Bundesbank President Joachim Nagel said at the opening of the Bundesbank’s euro pavilion. This converted event space at the Bundesbank’s Central Office in the heart of Frankfurt adds to the Bank’s existing outreach activities to engage and interact with interested members of the general public.