1. Research
  2. Products & Topics
  3. Region
  4. Germany

Germany

Germany has recovered well from the global financial and euro crisis. To make sure that the future challenges are successfully addressed, a balance between sustainable growth and social participation are essential. To achieve these objectives further reforms are needed as well as an improvement of the macroeconomic framework. Policymakers, businesspeople and the public must face up to their responsibilities. DB Research analyses the economic and political conflicting ideas and incorporates possible solutions into economic and political outlooks. These are based on national sector research, global business cycle and financial forecasts as well as the assessment of international political developments.

244 (131-140)
November 5, 2015
Region:
Since the last Focus Germany, some disappointing economic data have been published that fuelled the speculations around a slowing German economy. We do not believe that this requires revisions of our GDP forecast, though. Just like last year, the weakness of the industrial data is overstated by holiday effects. Nevertheless, there is a risk of an even lower foreign demand than stated by our already cautious estimates. This, however, is balanced by the upward risks for the domestic economy. Due to the migration dynamics over the summer months, we are reducing our budget forecasts for 2015 and 2016. Relative to gross domestic product we now expect surpluses of 0.3% and 0.0%, respectively (previously 0.7% and 0.5%). [more]
131
October 19, 2015
Region:
Contrary to what some critics say, traditional banks would be well advised to start using digital and algorithm-based data analysis instruments now. In future, this will be the only way they can offer their customers personalised financial services and recommendations and continually optimise their internal processes. Should they hesitate, however, the technology-driven, non-bank market newcomers will continue to extend their information lead and in time begin to offer more financial services (also outside the retail banking segment) that are easy to standardise and automate. The latter would further intensify cut-throat competition in the financial industry and could reduce traditional banks in the case of some financial services to pure-play infrastructure providers with declining customer contact. The introduction of so-called recommendation algorithms should be accompanied by the mandatory consent of the customer and transparent communication on how they function. [more]
132
October 7, 2015
Region:
It will take many years to reduce the demand overhang in the housing market if there is not a huge jump in building activity. This harbours the risk that the current phase of prices returning to normal could first lead to overshooting and end in a market correction. This scenario comes with high economic costs. These could be avoided by improving depreciation conditions for newbuild housing in Germany's large cities and metropolitan regions. [more]
133
October 2, 2015
Region:
Although the external and the financial environment have deteriorated we have lifted our 2016 GDP call to 1.9% (1.7%). Drivers are stronger real consumption growth due to lower oil prices/stronger EUR and the surge in immigration which should ceteris paribus add about ½ pp to consumption (split between private and public). The risks are mainly external (EMs). We lower our forecast for German inflation (national definition) in 2015 and 2016 to 0.3% and 1.3% from 0.5% and 2.0%. The relatively large adjustment for 2016 is due to the weaker inflation development in H2 2015 and due to our expectations of a weaker dynamic in 2016. [more]
134
September 21, 2015
Region:
In German corporate lending business, the role played by the different banking groups varies considerably between individual industries. For instance, a relatively large share of loans to the manufacturing sector – and particularly the "core" of German industry, mechanical engineering and automotives – is provided by commercial banks. Lending to construction and agricultural firms, on the other hand, is dominated by savings banks and cooperative banks. The retail banks have also gained significant ground in the services sector over the past 10 years. Landesbanks have only two strongholds, utilities/mining and transport. [more]
135
September 17, 2015
Region:
Analyst:
The healthcare sector uses advanced digital equipment that is supposed to accelerate medical progress and at the same time ensure economic efficiency. However, the gaps that exist are extremely worrying. In many highly developed advanced economies, and especially in Germany, there are already signs of the coming challenges connected with predicted population ageing and the associated shortage of doctors and the pressure on costs in the healthcare system. Here, technological progress in all its facets, from teleconsulting right through to 3D bioprinting, can dampen the increase in healthcare costs without adversely affecting quality. However, before this potential for boosting macroeconomic efficiency can be tapped there are economic, legal and societal obstacles that need to be surmounted (with regard to data protection, remuneration systems, education and network expansion, for example). The first steps in the right direction have already been taken – albeit with extreme caution and circumspection in some of these cases. In this respect it can certainly help to take a look at the industrial sector where digital technology is already making inroads under the “Industry 4.0” moniker. [more]
136
September 17, 2015
Region:
Analyst:
Augmented reality is far more than the much-discussed smartglasses that are equated with horrific dystopian scenarios in which everyone is under surveillance. The fact is that augmented reality supports people in their day-to-day activities, extends their perception and facilitates communication. That is why it is important not to write off the technology in its entirety, simply because of one individual application, but instead to seize the highly attractive opportunities presented by this fast-growing market. German companies, however, would probably do well to offer customised services for commercial applications in niche markets where the tech giants have not become established. [more]
137
September 4, 2015
Region:
Analyst:
Free trade stimulates economic activity in all the signatory countries. The free trade agreement between the EU and South Korea is a relatively recent example providing evidence of this fact. In H1 2015, German goods exports to South Korea were up by more than 50% on the level before the agreement came into force in July 2011; by contrast, total German exports increased by merely 13% in the same period. True, German imports from South Korea fell during this period. However, this was due to two sector-specific one-off effects. Stripping out these effects, the imports rose at an above-average pace. The positive economic stimuli should also be a strong argument in support of the current TTIP negotiations. [more]
138
September 1, 2015
Region:
GDP growth accelerated slightly to +0.4% qoq in Q2 with disappointing details. The domestic economy was a drag due to the decline of investments and an inventory reduction. Consumption slowed. Net exports were the major growth engine. German exports benefitted from the weaker EUR and strong demand especially from the US. We cut our Q3 GDP growth forecast slightly to 0.4% qoq. Despite this downward revision, we modestly increase our 2015 GDP forecast to 1.7% due to the marginal upward revision of H1 numbers, and changes in the growth composition. Fundamentally our outlook remains unchanged. Domestic demand, esp. private consumption, is the primary growth driver and the external environment remains challenging. [more]
139
August 27, 2015
Region:
Analyst:
What is the story with the carbon bubble? How great is the risk of conventional energy company valuations plummeting on account of ambitious climate protection policy? There may be many reasons for investors to channel less money into "fossil fuel companies" than before or to abandon them altogether and opt for other types of investment instead. However, one should not put too much stock in the reason being an ambitious, reliable and internationally comprehensive climate protection policy or a global decline in demand for fossil fuels. A carbon bubble is an unlikely development in such an environment, especially since the evolutionary nature of climate protection policy and technological changes in the energy sector offer the respective companies opportunities to adapt over time. [more]
140
2.6.7