Deutsche Bundesbank
Politico reported that the Bundesbank revealed losses of €21.6 billion in 2023, but these were offset by the utilization of the bank's previously accumulated allocations of €19.2 billion from recent years. The Bundesbank utilized €2.4 billion from its reserves, enabling it to conclude the year without incurring losses.
According to the publication, the issues faced by the Bundesbank are intensified by the characteristics of its bond portfolio. Its returns are less than those of other European central banks since the portfolio is primarily made up of German bonds. These securities usually provide lower returns than bonds issued by other eurozone nations.
In December 2024, the Bundesbank downgraded its prediction for Germany's GDP growth. The regulatory authority anticipates that the nation's GDP will increase by only 0.2% in 2025, rather than the 1.1% prediction made in June. The bank anticipates that in 2026 and 2027, the German economy will experience growth rates of 0.8% and 0.9%, respectively. Bundesbank President Joachim Nagel identified the primary source of uncertainty as “a potential rise in global protectionism.”
source: politico.com
According to the publication, the issues faced by the Bundesbank are intensified by the characteristics of its bond portfolio. Its returns are less than those of other European central banks since the portfolio is primarily made up of German bonds. These securities usually provide lower returns than bonds issued by other eurozone nations.
In December 2024, the Bundesbank downgraded its prediction for Germany's GDP growth. The regulatory authority anticipates that the nation's GDP will increase by only 0.2% in 2025, rather than the 1.1% prediction made in June. The bank anticipates that in 2026 and 2027, the German economy will experience growth rates of 0.8% and 0.9%, respectively. Bundesbank President Joachim Nagel identified the primary source of uncertainty as “a potential rise in global protectionism.”
source: politico.com
