Germany

Deutsche Wohnen

Real estate prices in Germany in 4Q23 down 7.2% year-on-year on average, commercial segment sees 12.1% drop

Norbolsa| In Germany, the problems in the commercial real estate market are increasing investor fears about the sector and possible lending banks being infected. The collapse in office property prices has accelerated, with Deutsche Pfandbriefbank’s share price at record lows. In particular, real estate prices in 4Q24 declined by an average of 7.2% year-on-year in Germany, the biggest drop in the entire historical series of the index compiled by the…


alemani piruli

Germany’s December trade surplus improves to €22.2 billion from €20.4 billion in previous month

Bankinter : Trade Balance (Dec): €22.2bn versus €19bn expected against €20.8bn previous (revised from €20.4bn). Exports -4.6% versus -2.8% expected versus +3.5% previous. Imports -6.7% versus -1.9% expected versus +1.5% previous. Assessment: The improvement in the trade surplus stems from a sharp drop in imports in the month, reflecting the weakness of the country’s domestic demand. 4Q23 GDP contracted -0.3% year-on-year (versus +0.0% in 3Q23) resulting in a -0.3% year-on-year…


alemania recesion

Germany falls by 0.3% in 2023, after +1.8% in 2022, confirming entry into recession and Eurozone weakness

Banca March: Yesterday confirmed the entry into recession of the German economy in 2023. Germany’s GDP fell by 0.3% for the year as a whole, after +1.8% in 2022, hurt by high inflation, rising interest rates and high energy costs. We highlight the negative performance of industry, down 2%, despite the positive contribution of the automotive sector and the manufacture of other transport equipment. There was also minimal growth in…


Alemania PIB

German industrial production falls for sixth consecutive month

Bankinter: Industrial Production in November was worse than expected: -4.8% year-on-year versus -4.0% expected and -3.4% previously (revised from -3.5%). In monthly data: -0.7% month-on-month against +0.3% expected and -0.3% previously (revised from -0.4%). Bankinter assessment: Weak data. This is the sixth consecutive decline of the indicator in annual rate and reflects that the weakness of the manufacturing sector is still present. The slowdown in demand in a context of…


alemania empleo

German unemployment rate reaches 5.9% in December, highest since May 2021

Link Securities | As released yesterday by the German Federal Employment Agency, Germany’s seasonally adjusted unemployment rate rose to 5.9% in December from a revised 5.8% in November, bringing the reading in line with the FactSet consensus of analysts. December’s is the highest unemployment rate since May 2021. The number of unemployed rose by 5,000 from November to 2.703 million in December, making it the eleventh consecutive month of rising…


Alemania PIB

Germany tightens belt with budget cuts of €17 billion

Banca March : Germany opts to tighten its belt. The German country has managed to agree on significant budget cuts of €17 billion in the wake of the funding gap, as the transfer of unused pandemic funds for climate purposes has been declared illegal. Thus, adjustments will be made in construction subsidies, transport spending, as well as in green energy and industry support. Climate funds will reduce spending by €12…


alemania berlin ampelmann

German investment confidence rises to 12.8 in December, up three points; eurozone up 10 points to 23.0

CdM| German investor confidence improved again in December, according to the Leibniz Centre for European Economic Research (ZEW) indicator, which rose to 12.8 points from 9.8 in the previous month, its best reading since last March in view of the medium-term expectation of a change in monetary policy by the European Central Bank (ECB). German investors’ assessment of Germany’s current economic situation also improved in December, with the corresponding indicator…


alemania bandera

German IFO rebounds in November for second month in a row to 87.3 from 86.9 in October

Link Securities| Germany’s business climate index, compiled by the IFO institute, rose in November to 87.3 points from 86.9 points in October, its second consecutive monthly improvement. The reading was slightly below the 87.5 points expected by the FactSet consensus of analysts. Sentiment reached its highest level in four months as companies became less pessimistic about both their expectations for the coming months (85.2 points versus 84.8 points in October)…


alemania ampelmann

Germany’s final GDP revised down 1/10th of percentage point to 0.4%, one quarter short of technical recession

Bankinter: 3Q 2023 GDP (final) is revised down one tenth of a percentage point (year-on-year) with respect to the preliminary figure, unchanged quarter-on-quarter. 0.4% (year-on-year) versus -0.3% preliminary and versus +0.0% previously. In the quarter-on-quarter comparison, -0.1% same as preliminary and against +0.1% previously. Assessment: In year-on-year terms GDP is revised down by one tenth of a percentage point. This means a return to negative year-on-year growth rates after +0.0%…


alemania germany ZEW

Germany freezes public spending after court ruling on Covid funds reallocated to climate initiatives

Banca March : The court in Karlsruhe has declared unconstitutional the transfer of €60 billion that had initially been earmarked to tackle the pandemic, but was not spent, to an off-budget fund with climate and energy initiatives. The finance minister has sent an information letter to the rest of the cabinet warning of the blocking of new spending. With the increase in the deficit, the German constitution’s rules on the…