Central Bank of Germany forecasts the economy to accelerate in the second quarter

The headquarters of the Deutsche Bundesbank, Germany’s central bank, is currently located at Mainzer Landstrasse 46 in Frankfurt/Main due to renovations. Germany’s economic outlook is gradually improving, as reported by the Bundesbank. Economic output is expected to increase slightly in the second quarter after a small rise at the beginning of the year. The underlying trend indicates that the economy is gaining momentum.

Positive signs are expected from service providers and private consumption in the second quarter, according to the Bundesbank. The ifo Institute’s survey results for the consumer-related service sectors suggest that rising real disposable household incomes will likely outweigh consumer uncertainty. However, the industrial economy is expected to remain subdued for the time being.

Preliminary data from the Federal Statistical Office shows that the German economy grew by 0.2% in the first quarter compared to the previous quarter. A second reading will be released by the authority soon. Last year, Germany experienced a slight recession with a decline of 0.2%, due to global economic slowdown, high energy prices, and increased interest rates.

The Bundesbank anticipates a rise in the inflation rate in May and expects it to remain slightly higher in the coming months. The Central Bank is closely monitoring economic developments to ensure stability and growth in the German economy.