Germany’s central bank, the Deutsche Bundesbank, is currently located at Mainzer Landstrasse 46 in Frankfurt/Main due to ongoing renovations. The Bundesbank has reported that Germany’s economic outlook is gradually brightening. Following a slight increase at the beginning of the year, economic output is expected to rise again slightly in the second quarter.
According to the central bank, the underlying trend indicates that the economy is gradually picking up speed. Positive signs are expected from service providers and private consumption in the second quarter. The ifo Institute’s survey results for consumer-related service sectors like retail and hospitality support this outlook, with rising real disposable household incomes likely to overshadow consumer uncertainty.
However, the industrial economy is expected to remain subdued for the time being, according to the Bundesbank. Preliminary data from the Federal Statistical Office shows that the German economy grew by 0.2% in the first quarter compared to the previous quarter, with a second reading expected on Friday. Last year, Germany slipped into a slight recession with a price-adjusted decline of 0.2%, affected by the global economic slowdown, high energy prices, and rising interest rates.
The Bundesbank anticipates that inflation may increase in May and could fluctuate at a slightly higher level in the coming months as Germany continues to recover from its economic downturn caused by these factors.
