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Germany's Economic Slump Bottoms Out, Recovery Next: Bundesbank President

Germany’s Economic Slump Bottoms Out, Recovery Next: Bundesbank President

Posted Monday, June 22, 2020 by
Arslan Butt • 1 min read

Bundesbank President Jens Weidmann expressed optimism that the German economy’s slump due to the ongoing coronavirus pandemic has bottomed out and is on its way towards gradual recovery with economic activity resuming across the country and other parts of the world. He made these comments in a recent interview with a German newspaper FAZ, adding that financial stimulus was necessary to boost the health of businesses but care should be taken to not get Germany too dependent on fiscal aid.

According to Weidmann, “The low point should be behind us by now and things are looking up again. Following the sharp slump, we only see a comparatively gradual recovery.”

The German government had rolled out a financial rescue package worth 1.1 trillion euros to protect the economy from the impact of the pandemic. In addition, it also announced an additional 130 billion euros worth of aid through more schemes to help stimulate the economy.

Weidmann also shed light on the issue with ECB, after a German court gave the central bank three months to justify its increases in bond purchase programs or risk having the Bundesbank pull out as a participant in the latest program. He remarked, “It goes without saying that I will maintain the confidentiality of the ECB council meetings. I would therefore be pleased if the Bundestag takes the initiative and invites me again to a dialogue.”

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