Germany Economic Outlook
May 31, 2022A detailed breakdown of Q1 national accounts confirmed the preliminary result of moderate growth, which was mainly driven by fixed investment and inventories. Household spending fell, as higher inflation and deeply pessimistic consumer sentiment more than offset the positive effect of the economic reopening. While the economy is expected to hold up relatively well in Q2, with composite PMI data for April and May showing a continued improvement in operating conditions, other data calls for caution. The war in Ukraine continues to weigh heavily on business and consumer sentiment. Moreover, both harmonized consumer and producer price inflation reached record highs in April, suggesting that price pressures will continue to hamper activity. Meanwhile, the European Commission recently highlighted the investment environment, productivity, digitalization and pensions as areas in need of reform.
Germany Economic GrowthThe pace of economic growth will moderate this year amid the fallout from the war in Ukraine. Elevated commodity prices will undermine consumer purchasing power and exacerbate supply chain issues for industry. Lockdowns in China may lead to additional supply bottlenecks and could also depress export demand. However, a tight labor market should provide some support. FocusEconomics Consensus Forecast panelists project the economy to grow 2.0% in 2022, which is down 0.2 percentage points from last month’s forecast, and to expand 2.5% in 2023.
Germany Economy Data
5 years of Germany economic forecasts for more than 30 economic indicators.
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|Bond Yield||-0.19||0.41 %||Jan 01|
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Germany Economic News
January 25, 2023
Business confidence rose to 90.2 in January from December's 88.6.
January 24, 2023
The S&P Global Composite Purchasing Managers' Index (PMI) rose to 49.7 in January from December's 49.0.
January 24, 2023
The GfK consumer climate index is forecast to rise further to minus 33.9 in February from minus 37.6 in January. The expected uptick in sentiment follows backward-looking data for January, which is released simultaneously and underpins the February expectation. Looking at the January data, consumers became less pessimistic about the economy and their personal finances in the year ahead.
January 17, 2023
Harmonized inflation eased to 9.6% in December from November’s 11.3%, undershooting significantly market expectations of 11.2%.
January 9, 2023
On a seasonally-adjusted monthly basis, industrial production rebounded 0.2% in November (October: -0.4% s.a.