Bundesbank said economic output in Germany is “likely to have increased sharply” in Q3. In terms of quarterly GDP, the economy “could have made up for a little more than half of the drastic slump” in 1H. But it’s still around -5% below pre-crisis level at Q4 2019. From today’s perspective, “the economy recovery is likely to continue in the current quarter, albeit at a much slower pace”.
Industry “caught up remarkably” with mood improving. But That for service companies was “clouded a little”, affected by recent sharp rise in coronavirus infections and containment measures. The “slight recovery” on the labor market “has recently continued”. Consumer prices fell slightly and will fall significantly below previous year’s level “due to the lower oil prices and base effects”.
