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• Close collaboration between Germany's government and the pharmaceutical industry will help avert drug shortages in the country.
• The continued suspension of fixed amount and discount contracts for pediatric medicines will benefit drugmakers.
• However, plans to ensure consistent supply of medicines will require reshoring of

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• Hungary booked five investment announcements, of which three were related to Gigafactories and the remaining two were related to EV battery component investments, as Hungary secured the largest number of batteries-related investments in the H222-H123 period.
• Germany managed to secure the second place with four batteries-related

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• German households will spend a relatively stable proportion of their total household spending on food, supported by high disposable incomes and the mass proliferation of Mass Grocery Retail across the country.
• German dietary spending patterns have been gradually shifting over the years, giving rise to more health-conscious consumers

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• We forecast Germany's construction industry to grow in real terms by a moderate 1.2% y-o-y during 2023, after surprising to the downside with a 2.3% y-o-y contraction in 2022.
• The impact of elevated construction costs, labour market constraints, and a challenging financing environment for the industry will continue to weigh on the

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• We hold a negative outlook for the German consumer over 2023, with real growth forecasted to contract over the year.
• Households in Germany will face a myriad of economic pressures, ranging from persistently high inflation (especially in the more essential categories, like food, housing and utilities), higher unemployment rates

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• Although Germany will remain a global leader in deploying electric vehicle (EV) charging infrastructure, we do not expect Germany to reach its goal of installing 1mn charging points by 2030.
• Germany has the most extensive EV charging network in Europe, but we do not expect it to meet the EU recommendation of employing one charger per

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• We hold a negative outlook for the German consumer over 2023, with real growth forecasted to contract over the year.
• Households in Germany will face a myriad of economic pressures, ranging from persistently high inflation (especially in the more essential categories, like food, housing and utilities), higher unemployment rates

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• The flash estimate for German real GDP growth in Q222 stood at 0.0% q-o-q (1.5% y-o-y). While this was below both our own expectations (+0.3% q-o-q) and those of Bloomberg consensus (+0.1%), the impact was more than offset by revisions made to historical data.
• We at Fitch Solutions maintain our forecasts for real GDP growth to slow

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• At Fitch Solutions, we have lowered our German real GDP growth forecasts to 1.5% for 2022 (down from 1.7%) and 1.0% for 2023 (down from 2.3%).
• High energy prices will weigh on domestic activity over the coming quarters, with there being significant uncertainty regarding the reliability of gas flows from Russia.
• Here, we outline our