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4 Jun 2013
IMF cuts German growth forecasts
FXstreet.com (Barcelona) - According to the International Monetary Fund, German growth should slow down this year due to the uncertain situation in the Eurozone. The IMF believes that the country will see a 0.3% expansion in 2013, half of what was initially estimated.
IMF's annual report on the state of the German economy states that the country's unemployment remains low, owing to the implemented reforms, and its foundations are solid, but that the unstable situation in the Eurozone could damage its exports and business investment.
Furthermore, the IMF recommends that Germany avoids excessive fiscal consolidation and acts as a support for the EU, helping it to restore stability in the area. For this reason the organization believes that the fiscal easing measures adopted by the German authorities this year are adequate in the current situation.
Finally, the IMF urged the country to encourage the immigration of qualified workers and create favorable conditions to raise the birth rate in order to guarantee stable and sustainable growth.
IMF's annual report on the state of the German economy states that the country's unemployment remains low, owing to the implemented reforms, and its foundations are solid, but that the unstable situation in the Eurozone could damage its exports and business investment.
Furthermore, the IMF recommends that Germany avoids excessive fiscal consolidation and acts as a support for the EU, helping it to restore stability in the area. For this reason the organization believes that the fiscal easing measures adopted by the German authorities this year are adequate in the current situation.
Finally, the IMF urged the country to encourage the immigration of qualified workers and create favorable conditions to raise the birth rate in order to guarantee stable and sustainable growth.