In the January 2022 edition of its monthly report, Germany's central bank suggested that the country's economy is likely to show a slight decrease for the fourth quarter of 2021. Manufacturing remained constrained by supply disruptions and consumption decreased on renewed COVID-19 fears, the regulator noted.
In addition, the Bundesbank said inflation developments may take longer to improve. The Bank sees that the price growth may remain "exceptionally high" in early this year due to climbing energy prices and supply bottlenecks.