Imf revises growth forecast for germany again

IMF revises growth forecast for germany again

For the current year, the fund is somewhat more optimistic and now expects a plus of 1.7 percent, according to the final paper of the annual consultations between the federal government, the bundesbank and the IMF.

For 2017, on the other hand, the IMF lowered its economic forecast slightly to 1.5 percent. However, these figures should not last long. Because the consequences of the british "brexit" vote to leave the EU have not yet been taken into account in the current IMF outlook.

the economic impact of the uK referendum has not yet been factored into this forecast, IMF experts point out. But they point to downside risks – given the uncertain global economy, aging society and little progress on structural reforms. As recently as april, the IMF had revised its January forecast, assuming that the German economy would grow by 1.5 percent in 2016 and 1.6 percent in 2017.

Following the recommendations made public in may, the IMF demands reforms and more investment in infrastructure from germany. Faster progress in structural reforms is important to increase medium-term growth in a rapidly aging society. There is financial leeway within the budget and debt rules to make additional investments. The IMF again points to the strained situation of life insurers as a result of low interest rates.

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