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 expansion to be more than twice June’s 0.5% estimate.
- 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.
31 Articles
31 Articles
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