Bundesbank: Downside risks to economy have increased substantially

In its monthly economic report, Germany's central bank, Bundesbank (Buba), highlights the key points found below.

Risks to future activity are skewed to the downside.

Probability has increased for a sharp downturn exposing vulnerabilities.

Contagion to banks may amplify the downturn.

Bank buffers might not be sufficient if several stability risks materialize simultaneously.