The German economy is currently lacking momentum, the Bundesbank said in its monthly report on Monday.
The central bank said that improvement in labor market and increase in wages are supporting investment by households in the construction sector.
Demographic challenges might dampen economic growth in coming years, unless suitable reforms are taken, the central bank added. The bank sees potential output growth at around 1.25 percent until 2020.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.