21:35 - 20.08.2026

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August 20, Fineko/abc.az. Germany’s central bank, the Bundesbank, stated in its monthly report that Europe's largest economy is clearly on the path to recovery. According to the report, neither the ongoing war in the Middle East nor temporary transport bottlenecks caused by record-low water levels on the Rhine River have stalled economic momentum, with GDP expected to expand further in the third quarter.

The Bundesbank also highlighted that the energy shock stemming from the Middle East conflict has not triggered broader wage inflation. Contracted wage growth slowed to 2.6% in the second quarter down from 2.8%, while base wage growth (excluding one-off payments) saw a sharper decline from 3,3% to 2,6%, signaling contained inflationary pressures.