IMF Staff Country Reports

Germany: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Germany

Publication Date:

July 17, 2023

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

The German economy has demonstrated resilience following the shut-off of Russian gas supply last year, with highly adverse scenarios of widespread energy scarcity being avoided. This success reflects impressive efforts to conserve energy and secure future energy supplies, as well as the lack of severe winter weather. Nonetheless, adverse effects from the energy shock and tighter financial conditions have been sufficient to tilt the economy into recession in recent months. Inflation also spiked as the energy price shock added to existing pandemic-related supply bottlenecks, though inflation is now falling as these effects start to ease. Germany’s financial system remains well capitalized and liquid overall, but banking turmoil in other advanced economies earlier this year has nonetheless heightened the focus on potential financial stability risks associated with rising interest rates.

Series:

Country Report No. 2023/258

Subject:

Commercial banks Cooperative banks Energy prices Energy pricing Expenditure Financial institutions Inflation International organization Monetary policy Prices

Frequency:

regular