Germany’s economy is experiencing persistent stagnation despite growth in other countries, according to the Deutsche Bundesbank.
President Joachim Nagel highlighted structural issues as a key factor, including rising energy costs, the green transformation, and demographic shifts that are particularly challenging for the country’s export-driven industry. Additionally, businesses have expressed concerns over heavy fiscal burdens and increasing bureaucratic obstacles.
The central bank’s total assets shrank by approximately €149 billion in the previous year, signaling the ongoing economic strain.
However, Nagel noted a slight improvement in earnings, and emphasized that price stability is within reach, with positive price forecasts for the future.
The Bundesbank’s financial position remains precarious due to a mismatch between long-term low-yield monetary policy securities and short-term higher-rate deposits.
Despite these challenges, the bank expects these financial pressures to alleviate in 2025, offering some hope for the economy’s recovery.
