According to a report by Jinshi Data on September 25, German central bank President Nagel said that the German economy may pick up pace because several reasons for its recent weakness have proved to be short-lived. In a speech on Tuesday, Nagel said that some factors hindering economic growth - including high inflation, reluctant consumers and high interest rates - may only be "temporary", while acknowledging that some long-term structural problems must be addressed.

He noted that while growth remains weak this year, the German economy could slowly accelerate again. Nagel's comments come amid growing concerns that Europe's largest economy is in recession and will not rebound soon. The Bundesbank warned earlier that the economy could contract in the third quarter after a 0.1% decline in the second quarter.

Germany's poor performance weighed on the 20-nation euro zone, where an economic recovery at the start of the year has fizzled out. It fueled speculation that the European Central Bank could cut interest rates again in October, rather than waiting until December.