Week in Focus
Analysis and background on economics, capital markts and financials. New every week.
Germany – is this the turning point?
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© Commerzbank
3 May 2024: Germany – is this the turning point?
The slight increase in real GDP in the first quarter and the improved sentiment among companies point to a recovery in the German economy, especially as the burden from monetary policy and energy prices is easing. We have therefore raised our growth forecast for Germany slightly this week. However, the weak trend of orders in construction and industry to date and the poor mood among consumers suggest that growth will not speed up until the middle of the year. In addition, the momentum is likely to be restrained because monetary policy will only loosen slightly and the numerous structural problems remain largely unresolved.
