German growth stronger than expected, seen picking up: Bundesbank chief
Bundesbank President Joachim Nagel said manufacturing and government spending are lifting growth, while forecasters now expect 2026 growth above 0.5%.
- On Wednesday, Bundesbank President Joachim Nagel said German economic growth will accelerate this quarter as Europe's largest economy recovers faster than expected, despite deep structural challenges.
- Germany stagnated for three years as its industrial sector lost competitive edge, but current assessments now point to stronger recovery than the 0.5% growth rate the Bundesbank forecast in June.
- Manufacturing recovery in chemicals and electrical equipment is driving gains, though Nagel added, "However, the recovery is not yet broad-based," citing subdued consumption and declining equipment investment.
- Nagel emphasized Germany needs labour market reforms to address its shrinking working-age population, alongside energy transition efforts and increased private investment to foster stronger growth.
- Meanwhile, inflation slowed last month to 2.8% from 3.3% in September, as major forecasters expect growth to persist in the coming years despite Germany's longstanding economic hurdles.
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According to Bundesbank boss Joachim Nagel, the German economy is recovering faster than expected. However, Germany must not rest on it. He calls for structural reforms.
German growth stronger than expected, seen picking up: Bundesbank chief
German economic growth will accelerate this quarter as Europe's largest economy recovers faster than expected, even if deep structural challenges continue to hold it back, Bundesbank President Joachim Nagel said on Wednesday.
"We see encouraging signs of improvement in the latest economic data and forecasts," the ECB board member said.
(Teleborsa) - Germany is experiencing a faster economic recovery than expected a few months ago, but the government must continue with structural reforms to ensure long-term growth...
Bundesbank President Joachim Nagel predicts an acceleration in growth.
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