Bundesbank: German Economic Output to Rise Slightly in 2Q

22 May 2024

By Aurėja Bobelytė – VILNIUS (Econostream) – The German economy is expected to grow marginally in the second quarter of 2024, the German Bundesbank said on Wednesday in its latest monthly report.

‘Economic output is expected to rise again slightly in the second quarter of 2024. Service providers are likely to continue their recovery. Ifo survey results indicate that this recovery could even broaden and intensify at the first signs of any impetus from private consumption’, the report said.

Increases in purchasing power were anticipated as the labour market was likely to stay strong and wages continued to rise, the Bundesbank said.

According to the report, inflation was forecasted to increase slightly in May and hover around a higher level for several months.

‘Overall, there are still risks to the fundamental disinflation process. For example, wage growth has recently been stronger than expected. This could mean that the still high price pressure on services in particular could persist for longer’, the report said