Bundesbank sees German economy bouncing back soon

FRANKFURT: Germany's economic slump should be short-lived, the Bundesbank said on Monday, adding that the euro zone's largest economy could have already bottomed out.

"The broadly stable labour market and increasing employment prospects indicate that the business cycle weakness will not last all too long," the German central bank said in its monthly report, adding that already the first quarter of 2013 showed signs of improvement.

Last week, the German statistics office said that the euro zone's largest economy contracted 0.5 percent in the fourth quarter of 2012.