Germany Market Snapshot
Market Overview
- GDP Growth: Shrunk by 0.1% in Q2 2024, indicating an extended period of fluctuating growth.
- Inflation: CPI inflation reached 2.5% in Germany, though it has shown significant decreases since the peak in 2022 across major European economies.
Public Equity Markets
- DAX 40: Returned 8.9% by 30 June 2024, outperforming major European indexes but lagging behind the S&P 500 for longer-term performance.
- Sector Performance: Financials, technology, and industrials led DAX 40 performance. Tech companies like SAP, Allianz, and Munich Re contributed to growth.
Venture Capital
- Deal Value: €2.2 billion across 207 deals in Q2 2024, marking a slight increase from the previous quarter.
- Exit Activity: Quiet; €0.1 billion in Q2 2024, reflecting cautiousness among founders, management teams, and investors regarding public listings.
- Fundraising: €0.9 billion raised in H1 2024 across seven VC funds.
Private Equity
- Deal Value: €16.5 billion in Q2 2024, dipping slightly from the previous quarter.
- Exit Value: €7.4 billion across 27 exits, with Aareon’s €3.9 billion buyout and KaDeWe Group’s €1 billion acquisition being notable transactions.
- Fundraising: €4.9 billion raised in H1 2024 across eight funds.
City Comparison
- Berlin: €34.6 billion in private market activity, leading in deal value and deal count.
- Munich: €11.3 billion in private market activity, ranking second in deal value and deal count.
Heatmap & Scorecard
- Germany Macro Activity Heatmap: Displays real GDP values and QoQ growth from Q2 2024 to Q1 2024, showing a general trend of economic stability.
Summary
The German market experienced mixed performance, with a shrinking GDP and steady inflation. Public equity markets showed resilience, particularly in sectors like financials, technology, and industrials. Venture capital deal values remained stable, while private equity activities witnessed fluctuations. Cities like Berlin and Munich led in private market activities, showcasing the diversity and strength of Germany's economic landscape.