However, it has been pointed out that financial innovations have made it difficult to discern the relationship between money supply and economic activity, and that although the relationship between the two is stable in the long term, it may be unsteady in the short term.
Domestic demand has remained weak. Only exports have contributed to growth. In the first half of the year, exports grew by 6.2%, while imports grew by 3.7%. This is in part also due to Germany’s ability to engage in highly competitive pricing. It is therefore likely that German enterprises will continue to benefit from strong growth in their export markets.