Germany is set to emerge from its current shallow recession in the third quarter of this year, the Bundesbank predicted today.
But the central bank's October monthly report added that a sustained upturn 'is still not discernible yet'.
Germany, the biggest euro zone economy, is technically in recession, with GDP contracting minimally in the fourth quarter of last year and in the first two quarters of this year.
The Bundesbank also said that German exporters were still enjoying a competitive advantage over their counterparts outside the euro zone, despite this year's strong gains in the value of the euro.
The bank said that since the introduction of the euro in January 1999, the price competitiveness of the German economy had improved by 10.5% over the long-term average since 1975.
