Download or read book Germany written by International Monetary Fund. European Dept. and published by International Monetary Fund. This book was released on 2024-07-18 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: The economy contracted in 2023 due to high energy prices and interest rates. Headline inflation has fallen sharply as end-user energy prices have stabilized, but core inflation remains somewhat stickier, driven by services. Falling inflation and tight labor markets have turned real wage growth positive. High interest rates have boosted bank profitability, but part of this increase is likely temporary. High interest rates have exposed vulnerabilities in banks’ financing of commercial real estate activity.